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