BagIT Sdn. Bhd., which supplies different types of bags, observes an accounting period that ends every 30 September. Comment on the appropriateness of the accounting procedure used by BagIT Sdn. Bhd.

On 1 August 2019, BagIT received a new batch of inventories costing RM38,000. On 30 September 2019, BagIT would have to pay RM42,000 to acquire the same inventories, due to changes in the exchange rate. Gains from an increase in the market price of inventories were recognized. You are required to illustrate the recording of the transactions in the Journal (Book of Primary transactions).