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 a few customers. To encourage prompt payment she offers cash discounts of $\frac{2}{10},\frac{n}{30},$ 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 $$44,800.$ Terms: FOB Shipping Point, $\frac{2}{10},\frac{n}{30}$ with prepaid freight of $$280$ added to the invoice. The exchange rate is P$5\mathrm{.}5$ 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, $2/10,\frac{1}{15},\frac{n}{30}.$ Add $12\%$ VAT to the gross invoice price.

$5$ Paid cash for freight of Folks Wear shipment, P$1,440.$

$6$ 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 PI$,800.$

$11$ 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 the salary of an office secretary P$14,000$ less payroll liabilities.

$16$ 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 $P12,320.$

$20$ 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 $P5,650$ and rent $P15,000.$

$25$ Paid for salary less payroll liabilities.

$28$ Issued a check in payment of the rent P$12$;$500.$

$30$ A physical count of inventory showed P$553,000$ still unsold.

Required:

Journalize the transactions.

Open the creditors' and customers' subsidiary ledger and post the entries.

Post the entries to the control accounts. Prove the balances of the subsidiary ledgers against the control accounts.

Determine the gross profit for the month and the gross profit ratio.