Question

The Timberland Store is a retail store and uses a periodic inventory system. Assume that the sales tax rates are GST @ 5% and PST @ 8%. The following transactions occurred during June 2022: June 4 Sold merchandise to Healthy Co. for $7,500. FOB shipping point. Healthy Co. is the final user of the merchandise. Credit terms 2/20,n/30. The cost of the merchandise was $4,500. 6 Purchased merchandise from Runner Co. for $8,200 under credit terms of 2/15, n/30, FOB destination. 12 Received a $750 credit memorandum acknowledging the return of merchandise purchased on June 6. I 13 Received Healthy Co.'s payment of the amount due from the June 4 sale. 15 Purchased office supplies for $200 before tax for business use. Paid for the purchase immediately 20 Paid the balance due to Runner Co. Instructions: Record the above transactions in the General Journal data entry form provided in the Module 5 Learn Assessment Dropbox.

Answer 1

solutions Date June ou credit Account Title Debit Account receivable 8475 sales revenue GST payable (500x st.) PST payable (1500x8%) 8856 GST Receivable (8200X 57.) 4lo Accout payable Account payable 847.5 purchase return and allowances GST receivable 7500 375 600 June 06 purchases 9266 June 2 810 3705 June. 13 8325 sales discount Accout receivable 150 8875 216 226 June.is office supplies GST receivable 10 cash June-20 Account payable (9266-8475) 871865 purchase discount ( 8200-750)ko cash PST payable cash Goo 149 8569.5 June 30 600 Note - PST on purchase is added to the cost of item purchased.