The following selected transactions were completed by Crown Traders during July $2018.$ VAT is not yet included. Purchases and freight charges are VAT related transactions.July $1$ Purchased merchandise from Canyon Trading, P $40,000$ terms $2/10,$ n$/30,$ FOB$-$ shipping point, freight prepaid, P$1,250\mathrm{.}10$ Paid Canyon trading in full$\mathrm{.}13$ Purchased merchandise from Davos Company, P $25,000.$ Terms, $1/10,$ n$/30,$ FOB destination, freight prepaid, P$4,000\mathrm{.}15$ Returned defective merchandise to Davos Company, P$7,500\mathrm{.}18$ bought merchandise from Baron Trading, P $57,500,$ terms, FOB destination, freight collect, $2/10,$ n$/30.$ Freight charges amounted to P$1,200\mathrm{.}23$ Paid Davos Company in full$\mathrm{.}28$ Paid Baron Trading in full$\mathrm{.}30$ Cash purchases from Sources Traders, P $10,000,$ terms, FOB, destination, freight prepaid, P $1,300\mathrm{.}31$ Paid the following expenses:Insurance P $4,000$Taxes & licenses $($VAT exempt$)2,000$