Part B (8 marks)

Using the periodic inventory system, prepare general journal entries for the following selected transactions of Harlow Ltd in July. Ignore GST.

5 July	Purchased inventory from BestHouse in cash for $13 200 and on credit for $12 000, terms 3/10, n/30
10 July	Sold inventory to Crane Ltd for $51 000 on account, terms 2/10, n/30
11 July	Returned inventory for credit that was previously purchased from BestHouse for $1 500
12 July	Made payment to BestHouse
14 July	Crane Ltd returned faulty goods for $800 credit
17 July	Purchased two computers for the new administrators and paid $4 510 cash

Required:

1) Prepare the journal entries to record each of the above transactions in the accounting records of Harlow Ltd. (7 marks)

2) Prepare the journal to record the transaction on 17 July, assuming that $4 510 is GST inclusive. (1 mark)