Question

Just explain the part I added red notice for it, only how to get these numbers ( please show me numbers, the calculation, what to add multiple, dividend to get this result

Refrence

Deegan. (2016). Financial Accounting . McGraw-Hill Education, Australia

Solution – Exercise 1 xercise 1 - Journal entries - Perpetual Inventory System + GST Requirementi Inventory 27 190 GST Paid 2 719 Accounts Payable 29 909 erryland's Markets had an inventory balance of $32,570 (excl. GST) at the close of the last counting period. The following sales and purchase transactions are for the current period. erryland Market uses a perpetual inventory system. 1 749 Accounts Payable Inventory GST Paid 1 590 159 Accounts Payable 28 160 Discount Received 512.00 GST Receivable 51.20 Cash at Bank 27 596.80 1. Purchased Inventories on account from a supplier for $29,909 (incl. GST), 2. Returned part of the above purchase of inventories to the supplier. The inventories had an original purchase price of $1,749 (incl. GST). 3. Paid for the balance of the purchase in time to receive a discount of 2% of the purchase price. 4. Sold inventories costing $24,900 (excl. GST) for $54,802 (incl. GST). Cash of $23 000 was received, with the balance due on account. 5. Inventories previously sold on credit for $2,222(incl. GST) were returned (cost of sales was $1,010 excl. GST). Cash 23000 Accounts Receivable Sales GST Payable 31 802 49 820 4982 Page 1 of 4 quired 1. Prepare general journal entries for the above transactions, 2. Suppose that a physical count of the inventory at the end of the current period shows inventory of $30 000 (excl. GST) to be on hand. Present the entries (if any) required under the perpetual inventory system to adjust for any discrepancy.

Answer 1

Accoumly payable :- - Accounts Payable on Purchase 29909 Lead, Rehwim Part of Accoumb Payable (1749) = $284607 Discoumr Received :- [20% om purchase price] Inventory Purchased 27190 lever lovembory Past Sesheymed (1590) Discount @ 2% (25600 X 2% Discount Received 512 GST Receivable 10% of Discount Received sy 512 x°10 % 2$ 51.20V Caab ak Bemul Balancing fiquexe) Accoumb Parable o 28,160 Discount Received (512) GST receivable t51020) Cauh at Bank . $27,596.80 Lena