Sophomore Ltd uses a perpetual inventory system. During the month of August 2020, the following transactions occurred:

Aug 5 Sold goods on credit for $5,000; terms 3/10, n/60. The inventory sold had a cost of $3,250.

Aug 6 The customer of August 5 returned $1,000 of the goods, costing $650.

Aug 14 Received payment from the customer of August 5.

Required:

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

b. On 17 August, Sophomore Ltd purchased $9,000 of inventory (terms 3/10, n/30) from West Coast Ltd. Assuming that this price is GST exclusive. Prepare the journal to record this transaction. Assumes GST applies (1.5 Marks).

Narrations are not required.

Date	Account Titles	Debit	Credit