A. Journalizing Sales and Purchase-Related Transactions. Ramos Company and Cammayo Supply Company engaged in the following transactions during the month of May 2020. Both are VAT registered. VAT is billed separately. May 4 - Ramos sold merchandise on account to Cammayo, P162,000. Terms: FOB destination, 2/10, n/30. Freight charges amounted to P2,000. 5 - Ramos sold merchandise on account to Cammayo, P710,000. Terms: FOB shipping point; 2/10, n/30. Freight charges amounted to P8,000. 6 - Cammayo paid freight charges on the purchase of May 5. 7 - Ramos received returned merchandise from Cammayo in the amount of P12,000 from the May 4 sale. 9 - Ramos received payment from Cammayo for the May 4 transaction less returns and discounts. 10 - Ramos paid the transaction charges on the May 4 shipment. 12 - Ramos received payment from Cammayo for the May 5 transaction. 18 - Ramos sold merchandise on account to Cammayo, P250,000. Terms: 40% trade discounts; FOB shipping point; 2/10, n/30. 21 - Cammayo paid freight charges on the May 18 transaction, P3,000. 23 - Ramos received payment from Cammayo for the amount due from the transaction of May 18. Required: 1. Prepare the journal entries for Ramos Company. 2. Prepare the journal entries for Cammayo Company. Answers: 1. Books of Ramos Company: May 2. Books of Cammayo Company: May