Transaction $1$:

Large Mart purchases $100$ notebooks from Quality Notebook Distributors. Large Mart receives the purchased notebooks as well as the invoice $($see invoice from Quality Notebook Distributors$)$ on the $2$ May $201$X$.$

On the $3$ May $201$X the inventory manager of Large Mart notices that $3$ of the received notebooks are damaged and these notebooks are returned to Quality Notebook Distributors. As a result of this return of $3$ notebooks, the Inventory Trade$/$Sales account and the Accounts Payable account need to be amended.

The Notebooks are delivered by Armidale Couriers and the driver leaves an invoice $($see invoice from Armidale Couriers$)$ for the provided service.

Required:

$1.$ Provide all journal entries that are necessary to record the purchase of the $100$ notebooks from Quality Notebook Distributors

$2.$ Provide all journal entries that are required to account for the receipt of the freight invoice from Armidale Couriers as well as the payment of this invoice on the due date $(12$ May $201$X$)$

$3.$ Provide all journal entries that are necessary to account for the return of the notebooks on

the $3$ May $201$X

$4.$ Provide all journal entries that are necessary to record the payment of the invoice from

Quality Network distributors on the $9$ May $201$X$.$ Make sure that you are deducting the early payment discount of $3\%$ that applies to this invoice because payment is made within the discount period

$5.$ Determine the cost of each notebook that is purchased in this transaction $($you will need this information in some of the following transactions$)$

$1$

Transaction $2$:

On the $5$ May $201$X$,$ Large Mart sells $5$ notebooks to the UNE Business School $($see Large Mart invoice number $923).$ The sold notebooks are identical to those that were purchased in transaction $1.$ However, before the purchase described in transaction $1,$ Large Mart still had $2$ of these notebooks $($model SPX $3000)$ in its inventory.

Large Mart accounts for its inventory using the first$$in$$first$$out $($FIFO$)$ method as well as a perpetual inventory accounting system. Each of the $2$ notebooks that were in stock on the $1$ May $201$X had been purchased for a cost of $$210($with no freight being payable$).$

Required:

$1.$ Determine the cost of goods sold for the $5$ notebooks sold to the UNE Business School.

$2.$ Provide all journal entries that are necessary to record the sale $($including the cost of goods sold$)$ of the notebooks to the UNE Business School. The payment terms of this sales

transaction can be found on Large Mart invoice no: $923.$

Transaction $3$:

The University of New England $($UNE$)$ has asked Large Mart to build a computer server for the UNE IT department. Large Mart has ordered the necessary components from a supplier called Sydney Server Specialists. The components and the matching invoice arrive at the Large Mart store on the $8$ May $201$X $($see invoice from Sydney Server Specialists$).$

Required:

$1.$ Provide all journal entries that are necessary to record the receipt of the invoice and components from Sydney Server Specialists

$2.$ Provide all journal entries that are necessary to record the payment of the invoice from Sydney Server Specialists on the due date indicated on the invoice.

$2$

Transaction $4$:

After the components for the computer server ordered by the UNE IT department have arrived, a Large Mart technician assembles the server. The assembly is done on the $12$ May $201$X and the technician has filled out a Manufacturing Report for ONE$$OFF ITEMS $($see important supporting documents$).$ These reports are completed for all computers that are built$/$assembled outside the normal production line for standard PC$$s that is run by Large Mart.

The manufacturing report outlines the components that were used, the labour that was required and the cost of both labour and components.

Required:

$1.$ Determine why the cost of the components listed on the manufacturing report is higher than the sales$/$purchase price of these components on the invoice that was received from Sydney Server Specialists

$2.$ Provide all journal entries that are necessary to account for the assembly of the computer server

important infomaramtion

invoice from Quality Notebook Distributors$)$ quantity $100$ total invoice $1$$$9,900\mathrm{.}00$

invoice from armidale $-$ transport of $100$ noe books. total invoice $$100$

large mart invoice $923-5$ x notebook spx$3000,$ each $460.$ total $2600$

sydney server specialist invoice$-$

Hard Drive $856\mathrm{.}00$

$2$ Monitor $425\mathrm{.}00$

$1$ Graphics Card & Mother Board $2460\mathrm{.}00$

$1$ Frame $300$

$1$ Cables $94$

sales total $4560$ plus freight $456$ total payment $5016$

large mart manufacturing report $-$ one offs

$1$ Hard Drive $-941$

$2$ Monitor $-467$ each

$1$ Graphics Card & Mother Board $-2706\mathrm{.}00$

Frame $-330\mathrm{.}00$

cable $-103\mathrm{.}40$

$10$ x labour $($$ per hour $$ to be paid at the next py day$)-400\mathrm{.}00$

total cost $5416\mathrm{.}00$