Reference no: EM132490715

On 28 February 2019, Darwin-based entity, Phonee Partners, had inventory of 480 phones at a total cost of $153 600. The business maintains a perpetual inventory system.

The following transactions occurred during March 2019.

• March 2 Purchased 280 phones on credit for $280 each from Sutherland Electronics, DDP Darwin, terms 2/10, n/30. Sutherland Electronics also made a cash payment of $150 for freight on this date.

• 5 Sold 325 phones on credit to Phone Phanatics for $650 each.

• 8 Received $1680 credit for 6 damaged phones returned to Sutherland Electronics.

• 11 Paid Sutherland Electronics in full, less discount. Received payment in full from Phone Phanatics.

• 18 Sold 60 phones on credit to Kingsford Phones for $620 each; terms 2/10, n/30. 20 Purchased 80 phones on credit for $280 each from Oakhurst International,

• EXW Melbourne, terms 2/15, n/30. Oakhurst International also made a cash payment of $160 for freight on this date.

• 24 Received payment in full from Kingsford Phones, less discount.

• 26 Paid Oakhurst International in full, less discount.

• 29 Sold 98 phones on credit to Hinchinbrook Phone Shop for $650 each.

• 31 Granted Hinchinbrook Phone Shop $4550 credit for 7 phones returned, which cost $1960.

Phonee Partner's chart of accounts contained the following accounts: Cash at Bank, Sales, Accounts Receivable, Discount Allowed, Inventory, Sales Returns and Allowances, Accounts Payable Cost of Sales, Discount Received.

Question 1: Prepare journal entries for the above transactions for the month of March 2019 for Phonee Partners.