Question
QUESTION 2 Backpackers Wholesale Ltd uses a perpetual inventory system to account for its inventory. The business is registered for GST. The GST rate is
QUESTION 2
Backpackers Wholesale Ltd uses a perpetual inventory system to account for its inventory. The business is registered for GST. The GST rate is 10%.
The following selected information is available for Backpackers Wholesale Ltd for the week ended 7 March 2022:
| 1 March |
Purchased 300 backpacks on account for $30 (plus GST) each from Travel world Ltd. Credit Terms: 1/10, n/30.
|
| 3th March | Sold 160 backpacks on account to Katzman Travels for $50 (plus GST) each. Credit Terms: 2/5, n/30. |
| 7th March | Katzman Travels settled their bill in full. |
REQUIRED:
Prepare the journal entries to record each of the transactions above. (Narrations are not required).
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
