Reference no: EM133073588
Question - Assume that VK Ltd had an inventory balance of 2,200 at $54 per unit at the close of the last accounting period. The following sales and purchase transactions are for the current period:
1 Jul: Purchased goods on account from JB Ltd for 1,000 units at $54 per unit.
5 Jul: Returned 80 units from the above purchase.
11 Jul: Paid for the balance of the purchase in time to receive a discount of 2% of the purchase price.
12 Jul: Sold 1,500 units of inventory at $118 each unit. Cash of $97,000 was received, with the balance due on account from CJ Ltd.
15 Jul: CJ Ltd returned 50 units of goods sold on credit.
17 Jul: Sold 800 units of inventory at $118 each unit on credit to MP Ltd.
Additional information: Opening balances for accounts receivable were: CJ Ltd $15,000 and MP Ltd $6,000.
Opening balance for accounts payable was: JB Ltd $14,000.
Required -
a) Prepare general journal entries (including narrations), assuming a perpetual inventory system is used. GST is applicable where necessary. Where applicable, round your answers to the nearest whole number.
b) Using the general journals from Question 2A, prepare the subsidiary and control accounts for the accounts receivable and accounts payable.