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Helibeb Limited buys and sells brown coarse sand in the course of its business. At the start of last month, Helibeb had an inventory of brown coarse sand valued at £5664 at cost. During last month, Helibeb bought coarse brown sand costing £6000 At the end of last month, Helibeb had an inventory of brown coarse sand valued at £4500. Note: No brown coarse sand was written off or written down as damaged or unsaleable in the course of last month.
Problem 1: How much was Helibeb's cost of inventory of brown coarse sand last month?
Prepare the necessary adjusting entry at December 31. Prepare the journal entry on the maturity date assuming that the full amount owing was received.
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