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.