a) Blaxland Traders is a wholesaler of table lamps operating on the Blue Mountains of New South Wales. The company buys lamps for $120 each and sells them for $200 each. During June 2021 the following transactions took place:

June 5 Sold 250 lamps on account, terms 5/7, n/30

June 10 Purchased 220 lamps from Lighting Express, terms 3/10, n/30

June 14 A customer returned 10 of the lamps sold on 5 June and paid for the remaining lamps sold.

June 14 Returned 25 lamps purchased last month to Lighting Express as they were the wrong colour.

June 18 Paid Lighting Express the amount owed for 10 June purchases.

At the end of June, a physical count of inventory revealed that the business had 200 lamps in its store.

Required:

1) Prepare the journal entries to record each of the above transactions in the accounting records of Blaxland Traders assuming that the periodic inventory system is used. Ignore GST. (7 marks)

2) Assume that Blaxland Traders uses perpetual inventory system. At the end of June, the inventory record shows a balance of $27 600. Explain whether any adjustment is needed and prepare the relevant journal entry. (2 marks)

Narrations in the general journals are not required.

(Type your response directly into the template in the text box below.)

b) The financial information of XYZ Ltd is presented below

Sales return and allowance	$23 000
Operating expenses	80 000
Cost of Sales	68 000
Sales discount	7 000
Sales revenue	250 000

Required:

Calculate gross profit? (2 mark)