Ms Snorelax operates Snorelax Ltd, a retailer of sleeping pills. The following transactions occurred during March 2020 (ignore GST). Snorelax Ltd had an opening sleeping pill inventory balance of $200,000.

MARCH

 1st     Returned $2,000 of the opening inventory and received cash.

 12th   Purchased additional sleeping pills on credit from the supplier for $300,000. The terms were 2/10, n/30.

 18th   Sold pills for $150,000 cash (Cost price to Snorelax $60,000).

 19th   Paid the supplier in relation to the 12 March purchase the amount owing.

 21st   Customer who purchased pills on the 18 March returned $15,000 in pills (cost price to Snorelax $6,000).

 The closing stocktake revealed an inventory balance of $450,000 at the end of the month.

Required:

(a) Record the above transactions for the month of March in the general journal using the periodic inventory method, including any relevant balance day adjustments and/or closing entries related to inventory. Narrations are not required. Ignore GST

b) Record the above transactions for the month of March in the general journal using the perpetual inventory method, including any relevant balance day adjustments and/or closing entries related to inventory. Narrations are not required. Ignore GST.

Answer rating: 100% (QA)

a General Journal Entries Periodic Inventory Method 1st Inventory Returns 2000 Accounts Pay... View the full answer