$($LO $3)$ E$13-5($Entries for Sales Taxes$)$ Sararas Ltd$.$ is a merchant and operates in the province of Ontario, where the HST rate is $13\%.$ Sararas uses a perpetual inventory system. Transactions for the business for the months of March and April are as follows:

Exercises

Mar. $1$ Paid March rent to the landlord for the rental of a warehouse. The lease calls for monthly payments of $$5,500$ plus $13\%$ HST$.$

$3$ Sold merchandise on account and shipped merchandise to$.$ Marcus Ltd$.$ for $$20,000,$ terms n$/30,$ f$.$o$.$b$.$ shipping point. This merchandise cost Sararas $$11,000.$

$5$ Granted Marcus a sales allowance of $$500($exclusive of taxes$)$ for defective merchandise purchased on March $3.$ No merchandise was returned.

$7$ Purchased merchandise for resale on account from Tinney Ltd$.$ at a list price of $$4,000,$ plus applicable tax.

$12$ Purchased a desk for the shipping clerk, and paid by cash. The price of the desk was $$600$ before applicable tax.

Apr. $15$ Paid the monthly remittance of HST to the Receiver General.

$30$ Paid the monthly PST remittance to the Treasurer of the province $($where applicable$).$

Instructions