Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi can anyone please help me with this! thank you! David's Music is a store that buys and sells musical instruments in Ontario, where the
Hi can anyone please help me with this! thank you!
David's Music is a store that buys and sells musical instruments in Ontario, where the HST rate is 13\%. David's Music uses a perpetual inventory system and the earnings approach to revenue recognition. Transactions for the business are shown below: Nov. 2 Purchased 3 electric guitars from Fender Supply Limited, on account, at a cost of $900 each. 4 Made a cash sale of 2 keyboards for a total invoice price of $2,400 plus applicable taxes. The cost of each keyboard was $550. 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 $800 and the guitar had been purchased on account. David'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 $550, was returned to inventory. 8 Purchased supplies from a stationery store. The price of the supplies is $400 before all applicable taxes. 10 Sold one Omega trumpet to Regional Band, on account, for an invoice price of $4,800 before applicable taxes. The trumpet had cost David's Music \$2,900. 13 Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $1,600 for each saxophone, excluding applicable taxes. 14 Collected $3,850 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. entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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