The following transactions occurred for Surfer Paradise Ltd (SPL), a raw materials supplier, during October of...

 

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The following transactions occurred for Surfer Paradise Ltd (SPL), a raw materials supplier, during October of the current year (all the amounts ALREADY include GST): Oct 1 Oct 4 Oct 13 A large customer made a purchase of $660,000 from SPL, agreeing terms of 3/15, n/30. SPL's cost of goods sold for this transaction was $400,000. Discovering that he had ordered too much, the customer returned $220,000 of the products he had bought on 1st Oct. SPL accepted the sales return and placed the goods back into the warehouse as inventory (SPL's cost of goods, $150,000) The customer paid off the outstanding amount owed to SPL for the 1st Oct purchase. Required: Now, as the accountant for Surfer Paradise Ltd (SPL). Journalise the above transactions, accounting for GST. Assume that the firm uses the perpetual inventory system and that there was no opening inventory. (Explanations not required) The following transactions occurred for Surfer Paradise Ltd (SPL), a raw materials supplier, during October of the current year (all the amounts ALREADY include GST): Oct 1 Oct 4 Oct 13 A large customer made a purchase of $660,000 from SPL, agreeing terms of 3/15, n/30. SPL's cost of goods sold for this transaction was $400,000. Discovering that he had ordered too much, the customer returned $220,000 of the products he had bought on 1st Oct. SPL accepted the sales return and placed the goods back into the warehouse as inventory (SPL's cost of goods, $150,000) The customer paid off the outstanding amount owed to SPL for the 1st Oct purchase. Required: Now, as the accountant for Surfer Paradise Ltd (SPL). Journalise the above transactions, accounting for GST. Assume that the firm uses the perpetual inventory system and that there was no opening inventory. (Explanations not required)

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Step 1 Perpetual Inventory System Perpetual Inventory System is a proce... View the full answer