The Fine Art Supplies business sells various art supplies to local artists. The business uses a perpetual inventory system.

• The balance of its inventory of art supplies at the beginning of October was $3000.
• Its cash balance was $960 and the 'Fine's Art Supplies, capital' balance was $3960 at the beginning of October.
• Ms Jung entered into the following transactions in October:

Date

Transactions

1 Oct.

Ms Jung invested another $1200 cash into the business

2

Purchased $528 (including GST) of art supplies for cash

4

Made an $1188 (including GST) sale of art supplies on credit to P Tarrant, with terms of n/15; the cost of the inventory sold was $660

6

Purchased $924 (including GST) of art supplies on credit from Ray's Paints, with terms of n/20

10

Returned, for credit to its account, $120 of defective art supplies purchased on 6 October from Ray's Paints

12

Made cash sales of $396 (including GST) to customers; the cost of the inventory sold was $240

13

Granted a $30 allowance to a customer for damaged inventory sold on 12 October

15

Received payment from P Tarrant of the amount due for inventory sold on credit on 4 October

25

Paid balance due to Ray's Paints for purchase on 6 October

Required:

A.Record the above transactions in appropriate accounts.

B.Determine the balances in all the accounts at the end of October.

C.Calculategross profitand 2) Gross Profit Percentage for October.

Note: Show calculations.