Dundas Desks buys desks for $80 each and sells them for $140 each. On 1 August 2016, 86 desks were in inventory. Dundas Desks completed the transactions below during August.

Aug. 2 Paid freight cost of $120 on 2 August purchase.

3 Sold 80 desks on account. Terms: 3/10, n/30, DDP acquirer’s warehouse. Paid freight cost of $60.

4 Returned 30 of the desks purchased on 2 August and paid the amount due on the desks retained in stock.

8 A customer returned 11 of the desks sold on 4 August. The desks were not defective and were returned to stock.

10 Purchased 72 desks on credit. Terms: 2/10, n/30, EXW supplier’s warehouse.

12 Received payment from customer for the amount due on 4 August sale.

13 Sold 140 desks for cash at $120 each.

18 Six of the desks sold on 18 August were returned by the customer for a cash refund. The desks were not defective.

20 Paid the supplier the amount owed for the 12 August purchase.

23Purchased 140 desks on account. Terms: 2/10, n/30, EXW supplier’s warehouse.

A physical inventory count taken on 31 August 2016 showed 63 desks in stock.

A. ignoring GST, prepare general journal entries to record the transactions assuming:

1. a perpetual inventory system is used

B. Repeat requirement A but assume the business is registered for the GST.

Answer rating: 100% (QA)

A 1perpetual DUNDAS Desks Journal entries 2 Inventory Accounts payable 3 Freight Inwards Cash at Ban... View the full answer