Current Attempt in Progress

Paul's Music is a store that buys and sells musical instruments in Ontario, where the HST rate is $13\%.$ Paul's Music uses a perpetual

inventory system and the earnings approach to revenue recognition. Transactions for the business are shown below:

Nov. $2$ Purchased $5$ electric guitars from Fender Supply Limited, on account, at a cost of $$700$ each.

$4$ Made a cash sale of $2$ keyboards for a total invoice price of $$2,800$ plus applicable taxes. The cost of each keyboard

was $$600.$

$5$ Received a credit memorandum from Western Acoustic Inc. for the return of an acoustic guitar that was defective.

The original invoice price before taxes was $$700$ and the guitar had been purchased on account. Paul's Music

intends to return the defective guitar to the original supplier.

$7$ One of the keyboards from the cash sale of November $4$ was returned to the store for a full cash refund because the

customer was not satisfied with the instrument. The keyboard, which cost $$600,$ was returned to inventory,

$8$ Purchased supplies from a stationery store. The price of the supplies is $$500$ before all applicable taxes.

$10$ Sold one Omega trumpet to Regional Band, on account, for an invoice price of $$5,500$ before applicable taxes. The

trumpet had cost Paul's Music $$2,600.$

$13$ Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $$1,700$ for each saxophone,

excluding applicable taxes.

$14$ Collected $$3,650$ on account. The payment included all applicable taxes.

$16$ Returned to Yamaha Canada Inc. one of the saxophones purchased on November $13,$ as it was the wrong model.

Received a credit memorandum from Yamaha for the full purchase price.

$20$ Made a payment on account for the amount owing to Fender Supply Limited for the purchase of November $2.$

Prepare the journal entries to record the Paul's Music transactions. $($Credit account titles are automatically indented when the amount is$($To record cash sales.$)$

$($To record cost of goods sold.$)($To record cash refund for returned merchandise.$)$

$($To record cost of returned goods.$)$

$($To record sales on account.$)($To record sales on account.$)$

$($To record cost of goods sold.$)$