Use the following transaction to answer the all of the questions. A company purchases inventory on credit for $80,000. Inventory costing $30,000 is sold on credit for $40,000. The applicable HST rate is 13% on sales and purchases. HST are remitted at the end of the month. What does the journal entry look like for the purchase of inventory using the periodic inventory system? Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2 debits Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the 2 debits
Use the following transaction to answer the all of the questions. A company purchases inventory on credit for $80,000. Inventory costing $30,000 is sold on credit for $40,000. The applicable HST rate is 13% on sales and purchases. HST are remitted at the end of the month. What does the journal entry look like for the purchase of inventory using the periodic inventory system? Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2 debits Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the 2 debits
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Use the following transaction to answer the all of the questions. A
company purchases inventory on credit for $80.000. Inventory costing
$30,000 is sold on credit for $40,000. The applicable HST rate is 13% on
sales and purchases. HST are remitted at the end of the month. What
does the journal entry look like for the purchase of inventory using the
periodic inventory system?
Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest
Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2
debits
Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest
Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the
2 debits](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d758c30-aeb5-4450-971e-b3123bb20140%2F915cae2a-4424-498b-9f5f-96b1bcb7165f%2Fqnv26us_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following transaction to answer the all of the questions. A
company purchases inventory on credit for $80.000. Inventory costing
$30,000 is sold on credit for $40,000. The applicable HST rate is 13% on
sales and purchases. HST are remitted at the end of the month. What
does the journal entry look like for the purchase of inventory using the
periodic inventory system?
Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest
Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2
debits
Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest
Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the
2 debits
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