19 The 10% GST is applicable in this question. The perpetual system is used. On May 1, Retailer Co. sold inventory to Customer Ltd. on account, $1,000 (GST inclusive), cost $800 (GST inclusive). 2, Customer Ltd. informed Retailer Co. that some of the inventory On May delivered was slightly damaged. Retailer Co. gave Customer Ltd. an allowance of $50 (GST inclusive). On May 30, Retailer Co. collected cash from Customer Ltd. The journal entry to record the transaction on May 2 in Retailer Co.'s books includes: A) Dr Sales Revenue B) Dr GST Payable $45.45 $5 $55 C) Cr Cash D) None of the answers given is correct.
19 The 10% GST is applicable in this question. The perpetual system is used. On May 1, Retailer Co. sold inventory to Customer Ltd. on account, $1,000 (GST inclusive), cost $800 (GST inclusive). 2, Customer Ltd. informed Retailer Co. that some of the inventory On May delivered was slightly damaged. Retailer Co. gave Customer Ltd. an allowance of $50 (GST inclusive). On May 30, Retailer Co. collected cash from Customer Ltd. The journal entry to record the transaction on May 2 in Retailer Co.'s books includes: A) Dr Sales Revenue B) Dr GST Payable $45.45 $5 $55 C) Cr Cash D) None of the answers given is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:19
The 10% GST is applicable in this question. The perpetual system is used.
On May 1, Retailer Co. sold inventory to Customer Ltd. on account, $1,000
(GST inclusive), cost $800 (GST inclusive).
2, Customer Ltd. informed Retailer Co. that some of the inventory
On May
delivered was slightly damaged. Retailer Co. gave Customer Ltd.
an allowance of $50 (GST inclusive).
On May 30, Retailer Co. collected cash from Customer Ltd.
The journal entry to record the transaction on May 2 in Retailer Co.'s books includes:
A) Dr Sales Revenue
B) Dr GST Payable
$45.45
$5
$55
C) Cr Cash
D) None of the answers given is correct.
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