Question 3 The following information is related to Serry Ltds inventory transactions during May 2020. Serry Ltd had an opening inventory balance of $30,000. May 1 Purchased inventory on credit from Gerrand Ltd for $20,000 (terms 2/7, n/30). 4 Returned $1,000 inventory purchased from Gerrand Ltd on 1 May 2020. 6 Paid Gerrand Ltd in full. 10 Sold inventory for $15,000 cash to Webster Ltd. The inventory sold originally cost Serry Ltd $7,500. 19 Webster Ltd returned $5,000 inventory to Serry Ltd. Cost price of the goods returned was $2,500. 31 The closing stocktake at year-end revealed an inventory balance of $46,000.

Required: (a) Record the above information for the month of May 2020 in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST. Calculate the COGS for the month of May 2020 using the perpetual inventory method.

(b) Record the above information for the month of May 2020 in the general journal using the physical inventory method. Narrations are not required. Ignore GST. Calculate the COGS for the month of May 2020 using the physical inventory method.