Accounting for Retailing

Quickstep retailers carried out the following transactions relating to a single product in March, 20X0:

GST is 10%.

March 3 Purchased 151 units for $50 each plus GST, on credit.

8 Returned 4 units which were unsuitable.

11 Sold 95 units for $60 each plus GST, on credit.

16 Customer returned 5 units sold on 11 March.

18 Received amount due from customer who made the March 11 purchase.

22 Quickstep sold 13 units for a total of $780 plus GST, terms 2/10, n/30

25 The customer paid the amount due.

30 The physical inventory stocktake at the end of the month consisted of 3 fewer units than the inventory account balance.

Required

a. Using a perpetual inventory system, prepare general journal entries to record the March transactions.

b. Prepare the Income Statement to Gross Profit for the month ended 31 March 20X0