Cherry Lopez runs the Wear Ever Store which sells ladies' wear. The company is VAT registered. All sales and freight are inclusive of 12% VAT. She carries charge accounts for few customers. To encourage prompt payment she offers cash discounts of 2/10, n/30, FOB shipping point. She invested on January 1 merchandise worth P 200,000. She also invested P 500,000 cash of which P 400,000 was deposited with Citibank for the account of the business. The following are the transactions for the month of January: 2. Issued a check for rent deposit, P 25,000 3. Purchased merchandise from a Hong Kong distributor for $44,800. Terms FOB shipping point, 2/10, n/30 with prepaid freight of $280 added to the invoice. The exchange rate is P5.5 to a Hong Kong Dollar. Add 12% VAT on the purchase price including freight. 4. Purchased merchandise from Folks Wear, P 39,200 less 2% and 1% trade discounts. Terms: FOB shipping point, 2/10, 1/15, n/30. Add 12% VAT on the gross invoice price. Paid cash for freight of Folks Wear Shipment, P 1,440. 5. 6. Sold merchandise on account to Sari Store, P 8,960. Freight collect, P 504. 7. Returned merchandise to Folks Wear who credited the account for P 1,800. 11. Issued a check in payment of the Hong Kong account. 14. Summary of cash sales P 15,680 which was immediately deposited. 15. Paid cash for salaries 14,000 less 5% withholding tax. 16. Issued a check in payment of Folks Wear account. 17. Received cash in full of Sari account. This was immediately deposited with Citibank. 18. Sold merchandise for cash, P 16,800. This was immediately deposited with Citibank. 19. Cash refund to customers amounted to P 12,320. 20. Sold merchandise on account to Robinson's P 33,600 plus prepaid freight P1,456. 21. Sold merchandise to Citibank credit cardholders, P 9,520 (Considered as cash sales. Use cash in bank account) 22. Received merchandise returned by Robinson's, P 4,704. VAT included. 23. Service fee charged by Citibank, P 1,125. (Use the title bank service charges and decrease cash in bank. 24. Paid for utilities in cash P 5,650 and rent P 15,000. 25. Paid for salaries less 5% withholding tax, 3% SSS, 1.5% Philihealth, and 2% Pag-ibig. 28. Issued a check in payment of the rent P 12,500. 30. A physical count of inventory showed P 553,000 still unsold. Requirement: 1. Journals 2. Gross profit for the month and the gross profit ratio.