The 10% GST is applicable in this question. The perpetual system is used.

WA Ltd. purchased merchandise goods from NSW Ltd. for cash. (The goods will be sold to retail customers in Perth.) The cash payment of $52,000 consisted of: the purchase price of the goods = $50,000 (GST inclusive), and the shipping fees to ship the goods to Perth = $2,000 (GST inclusive).

The journal entry to record the transaction includes which of the following?

A) Dr Freight Out $2,000 B) Dr GST Receivable $5,200 C) Dr Cost of Sales $50,000 D) Dr Inventory $47,273