The following information has been extracted from the general ledger of Green Grass
Smoothies:
Sales
Inventory: January X
Inventory: December X
Administration costs Paid in cash
Green Grass Smoothies calculates selling prices using a constant gross profit percentage
of The sales referred to above comprised credit sales and cash sales and
have been presented net of C in credit sales returns that occurred during the year.
All inventory purchases were bought on credit.
The stock count at December X revealed no inventory shortages.
You are required to:
a Calculate the purchases made during the year ended December X
b Show the journals that would have been processed during the year ended
December X assuming the perpetual system was used.
Ignore VAT and closing entries.
