An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%,...

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An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%, 2/15, n/30. The entity uses PFRS 15 and estimates that only 80% of the cash discount will be taken. By the end of the reporting period, the account receivable is not yet settled and the entity changes its estimate of cash discount to be taken to 40%. Requirements: a. Provide the journal entry on the date of sale and the year-end adjusting entry. An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%, 2/15, n/30. The entity uses PFRS 15 and estimates that only 80% of the cash discount will be taken. By the end of the reporting period, the account receivable is not yet settled and the entity changes its estimate of cash discount to be taken to 40%. Requirements: a. Provide the journal entry on the date of sale and the year-end adjusting entry.

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