Spenser’s Stores carried out the following transactions relating to a single product in October.

Required

(a) Prepare general journal entries to record the transactions, assuming that a perpetual inventory system is used. The beginning inventory on 30 September consisted of 80 units at \($120\) cost each. Ignore GST.

(b) Assuming that the business closes its records at the end of the month, prepare entries to close the Profit or Loss Summary accounts based on the data in requirement A, assuming that expenses for October were \($5800\).

Transcribed Image Text:

Oct. 5 Purchased 100 units for $120 each on credit. 11 13 19 26 Returned 6 units which were unsuitable. Sold 112 units for $180 each on account. A customer returned 3 units sold on 13 October. Sold 35 units for $180 each on account.