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$/30,$ FOBshipping point, freight prepaid, P$1,250.$

$10-$ Paid Canyon trading in full.

$13-$ Purchased merchandise from Davos Company, P $25,000.$ Terms, $1/10,$ n$/30,$ FOB destination, freight prepaid, $P4,000.$

$15-$ Returned defective merchandise to Davos Company, P$7,500.$

$18-$ bought merchandise from Baron Trading, P $57,500,$ terms, FOB destination, freight collect, $2/10,$ n$/30.$ Freight charges amounted to P$1,200.$

$23-$ Paid Davos Company in full.

$28-$ Paid Baron Trading in full.

$30-$ Cash purchases from Sources Traders, P $10,000,$ terms, FOB, destination, freight prepaid, P $1,300.$

$31-$ Paid the following expenses:

$\backslash$table$[[$Insurance$,$P $4,000],[$Taxes & licenses $($VAT exempt$),2,000]]$

From the data presented above:

Prepare journal entries