Sparkle Ltd is a paint retailer and uses a perpetual inventory system. The business started its operation on 1 June 2021. The business is registered for GST (GST rate is 10%). Following are some of the transactions that the company had during June 2021.

3 June	Purchased 90 units of inventory on credit. The cost of each unit is $80 plus 10% GST. Credit terms are 2/7, n/30
12 June	Paid the supplier for the purchase made on 3 June
13 June	Sold 55 units on credit. The sale price of each unit is $140 plus 10% GST. Credit terms are 5/10, n/30
14 June	Customer returned 5 of the units sold on 13 June.
21 June	Received the amount owing from customer

REQUIRED:

Prepare the journal entries to record each of the transactions above.

Answer rating: 100% (QA)

Journal entries are first ... View the full answer