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Gibson Pty Ltd buys new chairs for $100 each (plus 10% GST) and then sells them for $160 each (plus 10% GST). On 1 July

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Gibson Pty Ltd buys new chairs for $100 each (plus 10% GST) and then sells them for $160 each (plus 10% GST). On 1 July 2021, there were a total of 36 chairs still on hand in Inventory. Gibson Pty Ltd completed the following transactions during July, 2021. The business is registered for GST purposes and uses a Perpetual Inventory system. July 4 Purchased 70 chairs on account, from Cronin Traders. Terms: 2/10, n/30. Additionally, the business paid Freight Cost of $288 (plus 10% GST) on the same 4 July purchase. 6 Sold 53 chairs on account, to Monie Cafe. Terms: 3/10, n/30. Paid freight cost of $140 (plus 10% GST). 8 Returned 13 of the chairs originally purchased on 4 July and paid the amount due to Cronin Traders on the chairs retained in stock. 10 A customer, Monie Cafe, returned 4 of the chairs sold back on the 6 July. The chairs were not defective and were put back in stock. 15 Received payment from the customer, Monie Cafe, for the amount that was due on the 6 July sale. With respect to the transactions that have occurred in the month of July, 2021 during the above-mentioned dates, select the correct Journal entry from the following alternatives available (allow for rounding off to the nearest $ dollar for Gibson Pty Ltd figures that it includes in its Journal entries). Journal entries for July 4 a. Debit - Inventory 7 000 Debit - GST Outlays 700 Credit - Accounts Payable 7700 Debit - Freight Inward 288 Debit - GST Outlays 28 Credit - Cash At Bank 316 b. Debit - Inventory 7 000 Debit - GST Outlays 700 Credit - Accounts Payable 7 700 Debit - Cash At Bank 316 Credit - Freight Inward 288 Credit - GST Outlays 28 c. Debit - Accounts Payable 7700 Credit - Inventory 7000 Credit - GST Outlays 700 Debit - Freight Inward 288 Debit - GST Outlays 28 Credit - Cash At Bank 316 d. Debit - Accounts Payable 7 700 Credit - Inventory 7 000 Credit - GST Outlays 700 Debit - Cash At Bank 316 Credit - Freight Inward 288 Credit - GST Outlays 28 e. None of the above

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