Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Robert Busby Ltd records its inventory of digital cameras by using a perpetual inventory system on a FIFO basis. On 1 October 2016, Robert Busby
Robert Busby Ltd records its inventory of digital cameras by using a perpetual inventory system on a FIFO basis. On 1 October 2016, Robert Busby had an inventory of 50 cameras at a cost of exist300 each. During October 2016, the following transactions occurred. October 2 Purchased 75 cameras on credit for exist350 each from Rio Camera Ltd, terms 2/7, n/30. 7 Made a cash payment of exist130 for freight cost related to inventory purchased on 2 October. 15 Sold 45 cameras for cash to Jim Smith for exist580 each. 19 Six of the cameras sold on 15 October were returned by Jim Smith for a cash refund. The cameras were not defective. 27 Sold 30 cameras for exist600 each to Bruno Ltd, terms n/30. Required: Prepare journal entries for the above transactions for the month of October 2016 for Robert Busby Ltd, assuming all businesses were registered for GST and the GST rate was 10%. Note that the dollar amounts provided in the question are GST exclusive, that is, the amounts do not include GST. Narrations are NOT required
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started