Reference no: EM132576940

This company had an opening inventory balance of $8,400,000.

1 Returned to the suppliers $80,000 of the opening inventory and received cash.

12 Purchased additional inventory on credit from the supplier for $12,000,000.

18 Sold inventory for $6,000,000 cash (Cost price to company $2,400,000).

19 Paid the suppliers the account from 12 May.

31 The closing stocktake at year-end revealed an inventory balance of $17,800,000.

Question (a) Record the above information for the month of May in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST.

Question (b) Record the above information for the month of May in the general journal using the physical inventory method. Narrations are not required. Ignore GST. Journal entries should include the four closing entries to determine the cost of goods sold and ending inventory.