a) Star uses a perpetual inventory system. On day 1, it purchased merchandise inventory on account from Flowers for $30,000 terms 2/10, n/30. On day 4, Star received credit from Flowers for $3,000 of merchandise that Star returned. On day 7, Star paid Flowers the amount owing, net of any returns and discount. Show calculations.

Date	Debit account	Credit account	Debit $	Credit $
a) day 1
a) day 4
a) day 7
b) On day 8 Star had credit sales of $25,000. Star uses a perpetual inventory system and cost of goods sold was $15,000 (60% of sales). Estimated sales returns are 4% of sales. On day 12, Star recorded the necessary entries for a sales return of $400 related to the initial credit sale of $25,000 above. Items costing $240 were accepted by Star with the return. Star uses IFRS.
Date	Debit account	Credit account	Debit $	Credit $
b) day 8
b) day 12