Luna Pty. Ltd. is a start-up company retailing various mobile phones, based in Burwood, VIC. The owner approaches you for advice. She wants to use Last-in, first-out (LIFO) method for their business. Required: State your advice to recommend or not recommend LIFO to the owner. Proper and detailed justification is needed to receive full marks.

(b) BlackDoona Pty. Limited wholesales blackboards and is based in Bundoora, VIC. On the 1st of July 2018, BlackDoona had 100 blackboards that cost $250 each. Transactions during July 2018 are provided below. BlackDoona is registered for GST, and it uses perpetual inventory system with First-in, first-out method. Prepare journal entries for BlackDoona Pty. Limited. GST must be accounted for. Narrations are NOT required.

12 Made cash sales, sold 50 blackboards @ $880 each (GST Inclusive). 14 Purchased 70 blackboards at $770 each (GST Inclusive) on credit from Supplier X. Paid for the purchases made on the 14th of July and received a 4% discount for early 19 payment. 20 23 Made cash sales, sold 60 blackboards @990 each (GST Inclusive). Customer returned 15 defective blackboards purchased on the 20th of July. Cash refund was provided immediately