On April 30, 2020, Ladysmith Jewellers purchased inventory of $53,000 on account from Northern Gems Ltd., a jewellery importer. Terms were 2/15, n/45. On receiving the goods, Ladysmith checked the order and found $6,100 worth of items that were not ordered but included in the invoice. Therefore, Ladysmith returned this amount of merchandise to Northern on May 4. On May 14, Ladysmith paid Northern.

Required 1. Journalize all necessary transactions for Ladysmith Jewellers, which uses the perpetual inventory system. Explanations are not required.

2. Journalize the transactions of Northern Gems Ltd., which uses the perpetual inventory system. Northerns gross margin is 30 percent, so cost of goods sold is 70 percent of sales. Explanations are not required.