Reference no: EM132999313

The Fine Art Supplies business sells various art supplies to local artists. The business uses a perpetual inventory system.

1. The balance of its inventory of art supplies at the beginning of October was $3000.
2. Its cash balance was $960 and the 'Fine's Art Supplies, capital' balance was $3960 at the beginning of October.
3. Ms Jung entered into the following transactions in October:Date

Transactions

1 Oct. Ms Jung invested another $1200 cash into the business
2 Purchased $528 (including GST) of art supplies for cash
4 Made an $1188 (including GST) sale of art supplies on credit to P Tarrant, with terms of n/15; the cost of the inventory sold was $660
6 Purchased $924 (including GST) of art supplies on credit from Ray's Paints, with terms of n/20
10 Returned, for credit to its account, $120 of defective art supplies purchased on 6 October from Ray's Paints
12 Made cash sales of $396 (including GST) to customers; the cost of the inventory sold was $240
13 Granted a $30 allowance to a customer for damaged inventory sold on 12 October
15 Received payment from P Tarrant of the amount due for inventory sold on credit on 4 October
25 Paid balance due to Ray's Paints for purchase on 6 October

Required:

Problem A. Record the above transactions in appropriate accounts.

Problem B. Determine the balances in all the accounts at the end of October.

Problem C. Calculate gross profit and Gross Profit Percentage for October.