Purchased 240 units for $220 each on credit.

Here are the journal entries for Fitzroy Ltd using the perpetual inventory system. GST does not apply. 1. Purchased 240 units for 220 each on credit. Cost: 240 units × \220/unit = \52,800 |l|l|r|r| Date & Account & Debit (\) & Credit (\) \\ & Inventory & 52,800 & \\ & Accounts Payable & & 52,800 \\ & (To record purchase of inventory on credit) & & \\ 2. Returned 12 units to the supplier. Cost: 12 units × \220/unit = \2,640 |l|l|r|r| Date & Account & Debit (\) & Credit (\) \\ & Accounts Payable & 2,640 & \\ & Inventory & & 2,640 \\ & (To record return of inventory to supplier) & & \\ 3. Sold 48 units for 380 each on credit. Sales Revenue: 48 units × \380/unit = \18,240 Cost of Goods Sold: 48 units × \220/unit = \10,560 |l|l|r|r| Date & Account & Debit (\) & Credit (\) \\ & Accounts Receivable & 18,240 & \\ & Sales Revenue & & 18,240 \\ & (To record sales on credit) & & \\ & Cost of Goods Sold & 10,560 & \\ & Inventory & & 10,560 \\ & (To record cost of goods sold) & & \\ 4. Purchased office supplies for 360 cash. |l|l|r|r| Date & Account & Debit (\) & Credit (\) \\ & Office Supplies & 360 & \\ & Cash & & 360 \\ & (To record purchase of office supplies for cash) & & \\ 5. Customer returned 6 of the units sold in (3). Sales Return: 6 units × \380/unit = \2,280 Cost of Goods Returned: 6 units × \220/unit = \1,320 |l|l|r|r| Date & Account & Debit (\) & Credit (\) \\ & Sales Returns and Allowances & 2,280 & \\ & Accounts Receivable & & 2,280 \\ & (To record customer return) & & \\ & Inventory & 1,320 & \\ & Cost of Goods Sold & & 1,320 \\ & (To record return of inventory to stock) & & \\ 6. Sold 42 units for 390 each on credit. Sales Revenue: 42 units × \390/unit = \16,380 Cost of Goods Sold: 42 units × \220/unit = \9,240 |l|l|r|r| Date & Account & Debit (\) & Credit (\) \\ & Accounts Receivable & 16,380 & \\ & Sales Revenue & & 16,380 \\ & (To record sales on credit) & & \\ & Cost of Goods Sold & 9,240 & \\ & Inventory & & 9,240 \\ & (To record cost of goods sold) & & \\ 7. The physical inventory count at the end of the period consisted of 140 units of inventory. Perpetual Inventory Balance Calculation: Initial: 0 units Purchased (1): +240 units Returned to supplier (2): -12 units Sold (3): -48 units Customer returned (5): +6 units Sold (6): -42 units Perpetual Balance = 240 - 12 - 48 + 6 - 42 = 144 units Inventory Shortage: 144 units (perpetual) - 140 units (physical) = 4 units Cost of Shortage: 4 units × \220/unit = \880 |l|l|r|r| Date & Account & Debit (\) & Credit (\) \\ & Cost of Goods Sold & 880 & \\ & Inventory & & 880 \\ & (To record inventory shortage based on physical count) & & \\