Question

You should account for taxes when necessary by referring to the rates at the bottom of this page.

Here are some transactions made by the distributor of beauty care products Camille during the month of March 2020. The company offers credit conditions of 2/10, n / 30 to its customers. In addition, the company is used to taking advantage of discounts offered by its suppliers.

March

4 - Purchase of facial care products on credit: $ 3,950 plus taxes. Payment terms: 2/10, n30. Transport conditions: FOB starting point.

5 - Issuance of a check for $ 130 taxes included for the transportation of goods relating to the March 4 purchase.

7 - Sale of merchandise on credit at the Lina Beauty Center for a total of $ 2,769.32 plus taxes. The cost of the goods is $ 2,051.

8 - Credit note received for goods returned following the March 4 purchase: $ 773.75 plus taxes.

10 - Payment for the purchase of March 4.

12 - Credit note issued to the Lina Beauty Center in the amount of $ 262.40 taxes included for returned merchandise. The cost of the goods is $ 194.37.

15 - Collection of the amount due by Lina Beauty Center.

16 - Collection of cash sales of $ 9,083.03 taxes included. The cost of the goods thus sold is $ 5,851.85.

WORK TO DO

Prepare the required journal entries to record previous transactions considering that the company uses a permanent inventory system. The sales tax rates are as follows: GST = 5.0%; QST = 9.975%. Round up to two decimal places when necessary. The explanatory note describing each operation is optional.

Date Title of accounts and explanations FOLIO DEBIT CREDIT

Answer 1

Discounts will be calculated on actual values without the taxes.

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