Journal Entries Prepare the journal entries for the following transactions of East Lothian Company, a dealer of office machines, office supplies, and store supplies. Assume the company adapts the Periodic inventory system. 1. On April 5, the company purchased from Star Corporation several units of fax ma- chines, paper shredders, staplers, punchers, and memo pads for a wholesale price of 990,000, which was further reduced by a 5% trade discount. The terms of the purchase are 25% down payment and 2/15 1/5eom n/60 credit term. Freight of P1,000 is also paid. 2. On April 10, the company issued a debit memo to Star Corporation amounting to P20,000 for the return of the two paper shredders due to some technical issues. 3. On April 20, the company issued a check amounting to 46,000 as partial pay- ment of the outstanding account. . On May 2, the company sold various merchandise to Sun Trading amounting to 170,000 less 5-2 with a 56,000 down payment and 2/15 1/30 n/60 credit term. The cost of the items is 120,000 and freight of P 400 was paid. On May 3, Sun Trading returned some goods amounting to P 18,000.​