Question

Nifty Neville Enterprises recorded all sales and purchases using the perpetual inventory method during the month of June 2020. Assume all sales, sales returns, purchases and purchase returns amounts include GST at a rate of 10%.

Date	Business transactions
June 3	Purchased inventory on credit terms 2/10 n 30 for $7,700.
4	Purchased inventory for cash of $2,530.
6	Returned $308 of inventory purchased on 3 June as it was damaged.
8	Sold goods on credit terms of 3/15, n/30 for 22,660 (cost, $4,400 net of GST).
10	Paid for goods purchased on 3 July less purchase returns and received the appropriate discount.
12	Customers returned damaged goods from the 8 July sale of $550 (cost, $110 net of GST).
21	Received payment in full for the sale dated 8 June less any sales return and adjustment for discounts.

Required

Journalise the above transactions in the books of Nifty Neville Enterprises.

Note 1: Show calculations for GST and discounts.

Note 2: Do not round off calculations (take to the nearest cent).

Answer 1

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