Montrose Company completed the following transactions during May of the current year. Montrose Company uses a perpetual inventory system. May 3. Purchased merchandise on account from Floyd Co., P4,000, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of P120 added to the invoice. 5. Purchased merchandise on account from Kramer Co., P8,500, terms FOB destination, 1/10, n/30. 6. Sold merchandise on account to Howell Co., list price P4,000, trade discount 30%, terms 2/10, n/30. The cost of the merchandise sold was P1,125. 8. Purchased office supplies for cash, P150. 10. Returned merchandise purchased on May 5 from Kramer Co., P1,300. 13. Paid Floyd Co. on account for purchase of May 3, less discount. 14. Purchased merchandise for cash, P10,500