Answered step by step
Verified Expert Solution
Question
1 Approved Answer
undefined Youth Ltd uses perpetual inventory system. The following transactions were undertaken during the month of March 2020. Sold inventory $20,000 to XYZ Ltd on
undefined
Youth Ltd uses perpetual inventory system. The following transactions were undertaken during the month of March 2020. Sold inventory $20,000 to XYZ Ltd on account, terms 2/10, n/30. The cost of the inventory sold was 2 March $15,000. 11 March Received cash from XYZ Ltd in settlement of sales on 2 March. 15 March Purchased $6,000 inventory on account from ABC Ltd, terms 3/7, n/30. Returned $400 of the inventory purchased on 15 March to the supplier (ABC Ltd). 20 March 30 March Paid the amount due to ABC Ltd. Required: a) Journalise the above transactions in the books of Youth Ltd. Ignore GST. (6.5 marks) b) Journalise the first two transactions (on 2 and 11 march) in the books of XYZ. Ignore GST. Assume XYZ also uses perpetual inventory system. (2.5 marks) Narrations are not requiredStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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