Fox Ltd had the following transactions during the month of September. The business is registered for GST and all transactions provided below are INCLUSIVE of GST.

September 1 Sold inventory on account to J Jurb, for $3,850, terms 2/10, n/30.

1. Borrowed $9,000 cash from the bank at 10% p.a. Interest accrues monthly on the loan.

8 Made cash sales for the week totaling $2,178

10. Sold inventory on account to T Wyse, for $638, terms 1/7, n/30.

11 Received payment from J. Jurb.

17 Sold inventory on account to J Raffe, for $4,400, terms 2.5/14, n/30.

18 Jamie Fox (the owner) invested additional cash of $6,500 into the business.

19 Issued a credit note to J.Raffe for returned goods sold on credit for $440.

23 Sold inventory to P Donald for $1,100 cash

30 Received payment from J. Raffe.

30 Purchased store furniture on credit terms from Cortina Ltd for $6,050, terms n/60.

Required:

1. Record the transactions for the month of September in the journals provided below Total the special journals. Ignore narrations. Round amounts to the nearest whole $. [16 marks]

2. Post the necessary entries to the GST Collected account in the General Ledger. Balance and total the account. [4 marks]

3. Since all necessary detail is recorded in subsidiary ledgers for customers, Accounts Receivable Control account in the general ledger could be dispensed with. Discuss.

[4 marks]

1. GENERAL JOURNAL

DATE	PARTICULARS	Post Ref	DEBIT	CREDIT