PLESE HELP FOR SOLVED THIS 2 QUS

1. Austin Motors is located in Victoria, British Columbia, and is the only Austin dealer in western Canada. The dealership repairs and restores Austin vintage cars. Hal Irwin, the general manager, is considering changing insurance companies because of a disagreement with Len Legrew, an agent for the Dominion of Canada Insurance Company. Dominion is doubling Austin Motors' liability insurance cost for the next year. In discussing insurance coverage with you, a trusted business associate, Legrew brings up the subject of contingent liabilities.

Required a memorandum to inform Austin Motors of specific contingent liabilities arising from the business. In your discussion, define a contingent liability.

2.Sales revenue for Joes Sporting Goods for the current period amounted to $215,000. Joes

Sporting Goods records GST when merchandise is sold. All sales are on account. The GST rate is

5%. The journal entry would include a debit to:

Select one:

a. GST Payable for $10,750.

b. Accounts Receivable for $215,000.

c. Accounts Receivable for $225,750.

d. Sales Revenue for $215,000.