Question
Sparkle Ltd is a paint retailer and uses a perpetual inventory system . The business started its operation on 1 June 2021. The business is
Sparkle Ltd is a paint retailer and uses a perpetual inventory system. The business started its operation on 1 June 2021. The business is registered for GST (GST rate is 10%). Following are some of the transactions that the company had during June 2021.
3 June | Purchased 90 units of inventory on credit. The cost of each unit is $80 plus 10% GST. Credit terms are 2/7, n/30 |
12 June | Paid the supplier for the purchase made on 3 June |
13 June | Sold 55 units on credit. The sale price of each unit is $140 plus 10% GST. Credit terms are 5/10, n/30 |
14 June | Customer returned 5 of the units sold on 13 June. |
21 June | Received the amount owing from customer |
REQUIRED:
Prepare the journal entries to record each of the transactions above. (Narrations are not required).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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