Q2. Flow GST and journal entries (20 Marks)

A Timber merchant sells timber to a Furniture manufacturer for $220 (this amount include 10% GST). The furniture manufacturer then makes a table and sells it to Fantastic Furniture Ltd, a furniture retailer, for $440 (including GST). The retailer sells the table to a consumer for $550 (Including GST)

Required

1. Prepare journal entries for the flow of GST among businesses and the Australia Taxation Office