Freshman Ltd uses a perpetual inventory system. During March 2021, the following transactions occurred:

Mar. 2 Purchased $15,400 of inventory; terms 2/10, n/30.

5 Returned $1,600 of the inventory purchased on Mach 2.

11 Paid for the goods purchased on March 2.

17 Sold goods on credit for $10,500; terms 3/10, n/60. Cost of inventory sold was $5,700.

Required:

a) Prepare the journal entries to record the transactions. Ignore GST. (5.5 Marks)

b) Prepare the journal to record the first transaction (i.e., 2 March) assuming that Freshman Ltd uses a periodic inventory system and the purchase price of $15,400 is GST inclusive. Assumes GST apply (1.5 Marks).

Narrations are no required.