Exam 11: Special Journals With Taxes

Determine the amount of credit to be earned on a full return of merchandise purchased with an invoice price of $4,000 plus HST at 13% and credit terms of 2/10, n/30.

Use the following information to answer the questions below: Sales $73,400 HST Collected 9,542 Sales Discount 1,500 Sales Returns and Allowances 900 Delivery Expense 700 The Net Sales are ________.

On June 15, K. Finch purchased merchandise for her furniture store. The invoice was for $10,500 plus GST, $525, terms 3/10, n/30. On June 20, K. Finch returned $300 of merchandise for credit. On June 30, K. Finch paid the amount owed. Answer the following questions. a) The debit to Inventory on June 15 is ________. b) The credit to Accounts Payable on June 15 is ________. c) The credit to Inventory on June 20 is ________. d) The credit to Cash on June 30 is ________. e) The credit to Inventory on June 30 is ________.

Sales discounts are always given on taxes such as PST and HST.

Secret Trails received payment in full within the credit period for boarding for $800 plus 13% HST. Terms of the sale were 2/10, n/30. Which entry is required to record this transaction?

Determine the amount to be paid to the vendor within the discount period for purchase with an invoice price of $2,500 plus HST at 13% and credit terms of 2/10, n/30 when $700 (before HST) has already been returned for credit. The goods were purchased with freight terms of F.O.B shipping point and freight of $50 (before HST) was included on the invoice.

Customers can take cash discounts on GST and PST when terms are 2/10, n/30.

The accounts payable subsidiary ledger

The liability account used to record HST owed is

An entry for a purchase return will include

What should always be done after creating the schedule of accounts receivable?

Sales discounts are NOT taken on which of the following?

The contra-revenue accounts include

Determine the amount to be paid within the discount period for purchase with an invoice price of $7,000 plus 13% HST, subject to credit terms of 2/10, n/30.

The normal balance of Provincial Sales Tax Payable is a credit.

Bruno's Fashions bought 60 nose-rings for $20 each on account. The invoice included $54 GST and payment terms of 2/10, n/30. Ten nose-rings were returned prior to payment. The entry to record the payment (within the discount period) would include

A credit memorandum decreases which account on the seller's books?

Sold Merchandise for Cash subject to a provincial sales tax. This will be recorded with

Sold merchandise subject to GST, accepting cash. This will be recorded with

On March 30, Francine's Bakery purchased $1,000, plus 13% HST, of merchandise on account from Smithers Company. The goods were shipped F.O.B. shipping point. The freight charge of $80 (includes HST) was paid by Williams Company and added to the invoice. The amount to record in the Accounts Payable account is