Question: Please answer in proper format with all working clearly Abacus Ltd undertook the following transactions during May 2022. May. 1 Purchased $18,480 inventory; terms 1/10,

Please answer in proper format with all working clearly

Abacus Ltd undertook the following transactions during May 2022.

May. 1 Purchased $18,480 inventory; terms 1/10, n/30.

8 Returned $1,980 of the inventory purchased on May 1.

16 Sold inventory on credit for $8,745. Cost of the inventory sold was $5,700.

Required:

a) Prepare the journal entries to record the transactions using periodic inventory system. GST apply, and assuming that all the prices are GST inclusive. (4.5 Marks)

b) Prepare the journal entries to record the 8^th and 16^th transactions using perpetual inventory system. Ignore GST. (3 Marks)

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