Harry's Hardware uses a perpetual inventory system. During September 20X3, the following purchases and sales transactions occurred:

i. Goods sold on credit for $4 000 plus GST (cost $3 280) were returned.

ii. Purchased goods on account for $5 000 plus GST;

iii. Paid for the balance of the purchase in time to receive a discount of 2% of the purchase price; and

iv. Sold goods costing $15 300 for $22 600 plus GST. Cash of $10000 was received with the balance on credit.

Required: Prepare general journal entries to record the above transactions.

Answer rating: 100% (QA)

Explaination i Dr Sales returns and allowances 4 000 Dr GST payable 400 Cr Accounts receiv... View the full answer