Question

Please help me on how to journal this , thanks

Apr 10 Sale to Community Service Group, for prizes in a local talent contest, paid by cheque. The prices listed on the invoice are the regular selling price less a 10% discount as the group helps in the community INVOICE 812 Sound Bytes Electronics 1577 Scott Street, St. Catharines, ON L2N 4F8 Date: Terms: Apr 10, 2018 cash on delivery Sold to: Community Service Group 973 Queenston Street St. Catharines, ON L2R 6H4 Quantity Description Price Total vo PSP Player Movies PSP Player Music CDs Pop/Rock Movies - New 225.00 27.00 18.00 16.20 Total before taxes $ 225.00 54.00 180.00 81.00 $ 540.00 Our HST #G-4860 HST @ 13% Invoice Total Community Soni

Answer 1

1. Journal Entries -

If we are not charging tax on the customer then following journal would come -

Credit Journal Entries Date Accounts Title Debit Apr 10 Cash $ 540 Discount on Sale $ 60 Sales Revenue (Being Sales Made) $ 600

2. Journal Entries (Including Tax) -

If we are charging tax on the customer then following journal would come -

Credit Journal Entries (Including Tax) Date Accounts Title Debit Apr 10 Cash $ 610 Discount on Sale $ 60 Sales Revenue HST @ 13% (Being Sales Made) 600 $ $ 70