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.

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 .

Narrations are not required.