Mark's Music is a store that buys and sells musical instruments in Ontario, where the HST rate is 13%. Mark's Music uses a perpetual inventory system and the earnings approach to revenue recognition. Transactions for the business are shown below: Nov. 2 4 5 7 8 Purchased 3 electric guitars from Fender Supply Limited, on account, at a cost of $800 each. Made a cash sale of 2 keyboards for a total invoice price of $2,800 plus applicable taxes. The cost of each keyboard was $725. 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. Mark's Music intends to return the defective guitar to the original supplier. 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 $725, was returned to inventory. Purchased supplies from a stationery store. The price of the supplies is $100 before all applicable taxes. Sold one Omega trumpet to Regional Band, on account, for an invoice price of $6,700 before applicable taxes. The trumpet had cost Mark's Music $2,750. Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $1,700 for each saxophone, excluding applicable taxes. Collected $3,650 on account. The payment included all applicable taxes. 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. Made a payment on account for the amount owing to Fender Supply Limited for the purchase of November 2. 10 13 14 16 20 Prepare the journal entries to record the Mark's Music transactions. (Credit account titles are automatically indented when the Date Account Titles and Explanation Debit Credit Nov. 2 Merchandise Inventory 2712 Accounts Payable 2400 HST Payable 412 Nov. 4 Merchandise Inventory 3164 Cash 2800 HST Payable 364 (To record sale of keyboards) Cost of Goods Sold 1450 Merchandise Inventory 1450 (To record cost of goods sold) Nov. 5 Sales Returns and Allowances 791 Merchandise Inventory Cash Nov. 7 Sales Returns and Allowances Merchandise Inventory Cash (To record credit for returned keyboard) (To record credit for returned keyboard) Supplies Cash (To record cost of keyboard returned) Nov. 8 Accounts Receivable Service Revenue Cost of Goods Sold LO Merchandise Inventory HST Payable Cash NAMAN (To record sale of trumpet) Cost of Goods Sold Merchandise Inventory (To record cost of goods sold) v. 13 Accounts Receivable HST Payable Merchandise Inventory Nov. 14 4 Cash Accounts Receivable Nov. 16 A Accounts Payable Nov. 204 Accounts Payable Cash