Prepare the journal entries for Passport Merchandising, assuming that Passport Merchandising uses a perpetual inventory system. Passport Merchandising charges GST on all its sales at the rate of 5 percent and pays GST on all its purchases at the rate of 5 percent.
Explanations are not required.
May 8 Purchased inventory, on account, FOB destination, from Seguin Wholesale. $2,000 plus applicable GST.
10 Returned defective merchandise to Seguin, $300 plus applicable GST.
12 Sold merchandise to Dainty Store on account for $3,000 plus applicable GST. Cost of the merchandise sold was $1,300.
28 Collected balance on account from Dainty Store.
30 Paid balance on account to Seguin.
June 15 Prepare the remittance payment of GST based on only the above transactions in May.