1. Scott Ltd buys towels for $50 each and sells them for $80 each. Scott Ltd completed the below transactions below during January 2020:

Jan 1	Purchased 30 towels. Terms 2/10, n/30 from Bark Ltd. EXW suppliers warehouse.
Jan 2	Paid freight of $100 on Jan 1 purchase.
Jan 3	Sold 5 towels to Yellow Ltd on account. Terms 4/10, n/30
Jan 7	Returned 10 towels purchased 1 Jan and paid the remaining amount due.
Jan 8	Received payment from Yellow Ltd for the amount due on Jan 3 sale.

Required:

Ignore GST. Show supporting calculations.

Prepare the general journal entries to record the above transactions assuming a FIFO perpetual inventory system is used.