Using the perpetual inventory system, prepare general journal entries for the following selected transactions of Silver Traders in July. Ignore GST.

5 July	Purchased inventory from Crane Ltd in cash for $15 200 and on credit for $10 000, terms 3/7, n/30
10 July	Sold inventory to BestHouse for $31 000 on account, costing $15 500, terms 2/10, n/30
11 July	Returned inventory for credit that was previously purchased from Crane Ltd for $1 500
12 July	Made payment to Crane Ltd
14 July	BestHouse returned faulty goods for $750 credit, costing $375
17 July	Purchased two computers for the new administrators and paid $4 100 cash
29 July	Received payment from BestHouse

Required:

1) Prepare the journal entries to record each of the above transactions in the accounting records of Silver Traders. (10 marks)

2) At the end of July, a physical count of inventory revealed that the business had $26 500 in its store, however, the accounting system showed a balance of $24 500. Prepare the relevant adjusting journal entry. (1 mark)

Narrations in the general journals are not required.

(Type your response directly into the template in the text box below.)