Youth Ltd uses perpetual inventory system. The following transactions were undertaken during the month of March 2020.

2 March Sold inventory $20,000 to XYZ Ltd on account, terms 2/10, n/30. The cost of the inventory sold was $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.

20 March Returned $400 of the inventory purchased on 15 March to the supplier (ABC Ltd).

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)