Riverland Ltd uses a periodic inventory system. During April, the following transactions and events occurred:

April 3 Purchased $3,500 of inventory; terms 1/10, n/60.

6 Returned $400 of the inventory purchased on April 3.

12 Paid for the goods purchased on April 3.

13 Sold goods on credit for $2,000; terms 1/10, n/30.

14 The customer of April 13 returned $50 of the goods.

Required:

(1) Prepare the journal entries to record the above transactions. Ignore GST. (5.5 Marks)

(2) Prepare the journal to record the first transaction (i. e. 3 April). Assuming that Riverland uses a perpetual inventory system and the purchase price of $3,500 is GST exclusive. (1.5 Marks).