Suppose Toys and More Toys buys $156 800 worth of PegaBlock toys on credit terms of 5/10, n/30. Some of the goods are damaged in shipment, so Toys and More Toys returns $15 630 of the merchandise to PegaBlock. The business uses a perpetual inventory system. All amounts are inclusive of GST at the rate

Requirements

1. Journalise the following transactions:

1. Purchase of the goods on 8 January 2016.
2. Return of the damaged goods on 12 January. 2016.
3. Payment on 15 January 2016.

2. What is the final balance of Toys and More Toys inventory account?