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G&D Merchandise Company applies a Value Added Tax (VAT) rate of 10%. VAT should be added to the following transactions. The amounts do not include

G&D Merchandise Company applies a Value Added Tax (VAT) rate of 10%.
VAT should be added to the following transactions. The amounts do not include VAT.
December 12
Purchased merchandise for TL 20.000 with cash.
December 15
Sold merchandise on account for TL 15.000. The cost of merchandise was TL 10.000.
The journal entry for the transaction from 15 Dec has:
VAT Deferred 1.500 TL
VAT Deferred on debit side
VAT Deductible on credit side
VAT Received 1.500 TL
VAT Payable 2.000 TL

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