Question
Bramble Corp. operates in the province of Ontario and sells merchandise on which HST must be charged at a rate of 13%. Bramble uses a
Bramble Corp. operates in the province of Ontario and sells merchandise on which HST must be charged at a rate of 13%. Bramble uses a perpetual inventory system and has a calendar year end.
Transactions for the business for the month of March are shown below:
Mar. 1
Received an order from Franz Madolf for a specialty item not in stock. Due to the cost and nature of the item, Bramble required Madolf to pay $700 in advance of the sale.
4
Received $700 cash from Madolf toward the order placed on March 1.
5
Sold merchandise on account and shipped merchandise to Marin Inc. for $26,000, plus HST terms n/30, FOB shipping point. This merchandise cost Stratton $11,300.
7
Granted Marin a sales allowance of $1,300 (plus related taxes) for defective merchandise purchased on March 5. No merchandise was returned.
30
Collected amount owing from Marin.
(a)
Prepare the journal entries to record the March transactions of Bramble Corp.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started