Sophomore Ltd uses a perpetual inventory system. During the month of August 2020, the following...
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Sophomore Ltd uses a perpetual inventory system. During the month of August 2020, the following transactions occurred: Aug 5 Sold goods on credit for $5,000; terms 3/10, n/60. The inventory sold had a cost of $3,250. Aug 6 The customer of August 5 returned $1,000 of the goods, costing $650. Aug 14 Received payment from the customer of August 5. Required: a. Prepare the journal entries to record the transactions. Ignore GST. (5.5 Marks) b. On 17 August, Sophomore Ltd purchased $9,000 of inventory (terms 3/10, n/30) from West Coast Ltd. Assuming that this price is GST exclusive. Prepare the journal to record this transaction. Assumes GST applies (1.5 Marks). Narrations are not required
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