Question
QUESTION 2 Garden Support Ltd uses a perpetual inventory system to account for its inventory. The business is registered for GST. The GST rate is
QUESTION 2
Garden Support Ltd uses a perpetual inventory system to account for its inventory. The business is registered for GST. The GST rate is 10%.
The following selected information is available for Garden Support Ltd for the week ended 21 August 2022:
| 15th August |
Purchased 1,000 boxes of pine bark mulch on account for $11 (plus GST) per box from Mulch Wholesale. Credit Terms: 1/10, n/30.
|
| 17th August | Sold 350 boxes on account to Evan Trades for $20 (plus GST) each. Credit Terms: 2/5, n/30. |
| 20th August | Evan Trades settled their bill in full. |
REQUIRED:
Prepare the journal entries to record each of the transactions above. (Narrations are not required).
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Government and Not-for-Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese, Daniel L. Smith
8th edition
1119495814, 1119495857, 1119495819, 9781119495819 , 978-1119495857
