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Assume that Merrylands Markets had an inventory balance of $32 570 at the close of...

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Accounting

Assume that Merrylands Markets had an inventory balance of $32 570 at the close of the last accounting period. The following sales and purchase transactions are for the current period.

NOTE: GST at 10% is included in the amount where applicable.

1. 2. 3.

4.

Purchased goods on account for $29,909.

Returned part of the above purchase that had an original invoice price of $1,749.

Paid for the balance of the purchase in time to receive a discount of 2% of the invoice

price.

Sold goods on account costing $24 900 for an invoice price of $54 802.

Required

(a) Prepare general journal entries assuming the perpetual inventory system is used.

(b) Suppose that a physical count of the inventory at the end of the current period shows inventory of $30,420 to be on hand. Present the entries (if any) required to adjust for any discrepancy.

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