Casey Ltd’s accounting system uses special journals and subsidiary ledgers. The following transactions occurred during October 2016 (GST is ignored). All sales are n/30.

Oct

3 11 13 18 24 27

Purchased inventory from P. Forza, $1030, terms 2/15, n/30. Sold goods to B. Harley on credit, invoice 435, $750. Purchased office furniture on credit from R. Gerace, terms n/30, $5460. Paid P. Forza for goods purchased on 3 May. Purchased goods from C. Dixon, $970, terms 2/15, n/30. Sold inventory to K. Lee for cash, $1090.

Required

1. Ignoring GST, enter the appropriate transactions into the purchases and sales journals for October, and explain how each would be posted to accounts in the ledgers.

2. Assuming that the company is registered for the GST, enter the appropriate transactions into suitably ruled purchases and sales journals, and explain how each would be posted to accounts in the ledgers.