The accounting system of B. Ellen includes a sales journal, a purchases journal, a cash receipts journal, a cash payments journal and a general journal. The chart of accounts shows the following titles.

100 Cash at Bank 410 Sales Returns and Allowances 110 Accounts Receivable Control 420 Discount Received

115 Prepaid Insurance

150 Office Equipment

201 Accounts Payable Control 210 Loan Payable

300 B. Ellen, Capital

400 Sales

500 Purchases

503 Purchases Returns 510 Discount Allowed 550 Rent Expense

560 Insurance Expense 570 Sundry Expenses

During July, the transactions were as follows (ignore GST).

July 3

6 Purchased inventory on credit from Kelly Ltd. $4400, Invoice 312, terms 1/10, n/30 8 Sold inventory on credit to Leschev Ltd, $4500, terms 2/20, n/60, invoice 532

1. 11Received a credit note from Kelly Ltd. for inventory returned due to a defective unit
2. purchased on 6 July, $250
3. 12Issued a cheque (cheque no. 977) to Kelly Ltd for balance owing on invoice 312
4. 13Sold inventory for cash, $1,575

15 Paid $3,150 for a 12-month insurance policy. The policy is effective from 16 July 2019.

Cheque no. 978

20 Purchased inventory on credit from F. Nunn, $3,690, invoice 506, terms 2/10, n/30 25 Received payment from Leschev in settlement of invoice 532

28 Issued cheque for Sundry expenses $ 2,500, Cheque no. 979

Required

Record the transactions in the appropriate journals. Indicate how the postings would be made from the journals by entering the relevant posting references.