Young Ltd uses perpetual inventory system. The following transactions were undertaken during the month of January 2023.

1 Jan Purchased $18,000 inventory on account from ABC Ltd, terms 3/7, n/30.

4 Jan Returned $1,200 of the inventory purchased on 1 January to ABC Ltd.

9 Jan Paid the amount due to ABC Ltd.

12 Jan Sold inventory $10,000 to Small Ltd on account, terms 2/10, n/30. The cost of the inventory sold was $7,500

21 Jan Received cash from Small Ltd in settlement of their account.

Required:

a) Journalise the above transactions in the books of Young Ltd. Ignore GST.

b) Journalise the last two transactions (on 12 and 21 January) in the books of Small Ltd. Ignore GST. Assume Small Ltd also uses perpetual inventory system.