Exam 11: Special Journals With Taxes

Morris Jewelry Store sold R. Alexander a diamond engagement ring for $2,000 plus 5% PST and 5% GST. The ring cost Morris Jewelry Store $925. Terms of the sale are n/30. Date of the sale was April 12, date of the payment was May 12. On April 15, R. Alexander received an allowance for a flaw in the ring, $500. Required: Determine the amount R. Alexander should pay Morris Jewelry Store, May 12. Show your computations.

What type of account is Prepaid HST?

Purchases discounts are usually not taken on PST or HST.

Martha's Rug Company has the following transaction totals for the month. Use this information to answer the questions below. Sales Returns and Allowances        $1,300 Sales Discounts        1,100 Inventory purchased        15,000 HST Paid        720 Sales        42,000 HST Collected        2,415 Discounts on purchases        1,020 Purchases Returns and Allowances        1,400 Cost of Freight-In        920 Beginning Inventory        7,650 Cost of Goods Sold        10,120 Based on the above, Ending Inventory is ________.

The total of all cash and credit sales, net of HST, equals

Provincial Sales Tax Payable represents an asset on the books of the seller.

What type of account is HST Payable?

Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15 plus 5% GST. The invoice included a 6% provincial sales tax, 5% GST, and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the original sale would include

If Rosie sends back damaged merchandise for credit, to Rosie it would be a

Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15. The invoice included a 5% provincial sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment if it was received during the discount period would include

Sold merchandise subject to HST at 13%, accepting cash. This will be recorded with

Lee's Golf Shop on May 31 has the following transaction totals: Sales        $11,000 HST Collected       1,600 Sales Returns and Allowances        1,000 Opening Inventory        8,000 HST Paid        1,090 Cost of Freight In        500 Purchases during the period        1,000 Purchases discounts received        600 Cost of Goods Sold        2,500 Based on the above, ending Inventory for the period is

The Prepaid HST account normally has a credit balance and is a Contra Cost account.

Net Sales equals Gross Sales plus HST, less Sales Returns & Allowances, less Sales Discounts.

A debit memorandum decreases which account on the buyer's books?

Determine the amount of cash collected on a credit sale in the amount of $4,300, subject to 13% HST when $500 worth of merchandise has already been returned for credit, and the invoice was paid within the discount period which allowed a 2% discount.

PST Payable is a Liability Account.

A cash payments journal and a cash disbursements journal are the same thing.

Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15. The invoice included a 5% provincial sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment if it was received after the discount period would include

Entries to customers' accounts for sales made with 13% HST are recorded in the