Reference no: EM132567583
Finger Lickin' Distributing Company completed these inventory transactions in April. (Include GST)
Apr. 4 Purchased inventory on account from Kentucky Supply Ltd $5,900, terms 2/7, n/30.
6 Sold inventory on account $5,000, terms 2/7, n/30. The cost of inventory sold was $4,000
7 Paid $200 freight on 6th April sale.
8 Received credit from Kentucky Supply Ltd for inventory returned $300.
11 Paid Kentucky Supply Ltd in full, less discount.
13 Received collections in full, less discounts, from customers billed on 6 April.
Required
Question 1: Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system. Narrations are not required