Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please provide the correct answer 5. The following are transactions for Company A in September, 2023. Prepare the respective journal entries. 1. Sold merchandise (cost
please provide the correct answer
5. The following are transactions for Company A in September, 2023. Prepare the respective journal entries. 1. Sold merchandise (cost $15,000 plus HST) for $18,800 cash plus 13% HST 2. Provided services to customers who made advance payment of $7,000 (HST $805 ) 3. Calculated and Paid Receiver General (Government) HST due at this point 4. Borrowed $18,000 from Bank on a 3-month, 6% note. Interest payable upon maturity 5. Sold 500 units of a NEW product on account for $60 per unit, plus 13% HST. The new product has a 2 -year warranty. It is expected that 6% of units sold will be returned for repairs at an average cost of $10 per unit. At end of month, $875 of parts inventory was used for warranty repairs for the new products 6. Sold $500,000 plus HST in Cash which has 50,000 loyalty points worth $1 each. Based on past experience, 10% of these points are expected to be redeemed 7. Customers redeemed $1,750 of loyalty rewards at end of month. $201 HST was included in the $1,750. (15 marks)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