Spots and Stripes Ltd has the following transactions in September 2022:

September 3	Spots and Stripes sold goods on account to Black and White Emporium for $6500, terms 2/7, n/30. The cost of the inventory sold was $2300
September 5	Purchased inventory on account from ABC Ltd for $2500, terms 3/7, n/30.
September 9	Black and White Emporium returned goods to the value of $700. Spots and Stripes Ltd assessed the goods as not defective and issued a credit note. Cost of the goods returned was $450.
September 10	Received payment via direct debit from Black and White Emporium in full settlement of the above transactions.
September 12	Paid ABC Ltd in full settlement of account

Required:

Prepare the journal entries to record each of the above transactions in the accounting records of Spots and Stripes assuming that the perpetual inventory system is used. Ignore GST.

Answer rating: 100% (QA)

For the sale to Black and White Emporium on September 3 Debit Accounts Receivable Assets 6500 Cred... View the full answer