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Bonita Limited is a merchant operating in the province of Ontario, where the HST is 13%. Bonita uses a perpetual inventory system. Transactions for the
Bonita Limited is a merchant operating in the province of Ontario, where the HST is 13%. Bonita uses a perpetual inventory system. 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 $7,100 plus 13% HST. | ||
3 | Sold merchandise on account and shipped merchandise to Marvin Ltd. for $33,500, plus applicable sales taxes, terms n/30, FOB shipping point. This merchandise cost Bonita $18,200. | |||
5 | Granted Marvin Ltd. a sales allowance of $900 for defective merchandise purchased on May 3. No merchandise was returned. The merchandise had cost $700. | |||
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 HST to the Receiver General. The balances in the accounts were as follows: HST Payable $7,480 and HST Recoverable $1,929. |
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