Nebula Limited is a merchant operating in the province of Manitoba, where the PST rate is 7%. Nebula uses a perpetual inventory system and the earnings approach to revenue recognition. Transactions for the business are shown below: 

May 1 Paid May rent to the landlord for the rental of a warehouse. The lease calls for monthly payments of $7,300 plus 5% GST. 

3 Sold merchandise on account and shipped merchandise to Marvin Ltd. for $25,000, plus applicable sales taxes, terms n/30, FOB shipping point. This merchandise cost Nebula $18,600. 

5 Granted Marvin Ltd. a sales allowance of $800 for defective merchandise purchased on May 3. No merchandise was returned. The merchandise had cost $600. 

7 Purchased on account from Macphee Ltd. merchandise for resale for $11,000, plus applicable tax. 

12 Made a cash purchase at Home Depot of a desk for the shipping clerk. The price of the desk was $600 before applicable taxes. 

31 Paid the quarterly remittance of GST to the Receiver General. The balances in the accounts were as follows: GST Payable $7,480 and GST Recoverable $1,917. 

Instructions 

Prepare the journal entries to record these transactions on the books of Nebula Limited.