Ray Company, importer of cell phones, sold goods to Nokia Mart on August $1,2022$ at an invoice price of $P13,440.$ To attract customers, the company sells on account with terms of $\frac{2}{10},\frac{n}{30}.$ Nokia gave a $30\%$ down payment, got an allowance approved for two defective cell phones priced at P$1,680$ on August $4$ and paid promptly its account on August $10.$

Required: a$)$ Entries in Ray's books, a non$-$VAT registered firm under the periodic method.

b$)$ Do the entries again assuming Ray is a VAT registered firm. Add $12\%$ VAT.