Torres Snowboard Store operates in Barrie, Ontario ( HST of 13% ). Torres has a perpetual inventory system. The following selected transactions took place during August, 2022.

Aug. 1 Purchased $20,000 (plus HST) worth of snowboards ( on account ) from Burton

Snowboard Manufacturing Company.

7 Purchased a snowboard storage rack for the store. Paid $2,000 ( plus HST ) for the rack.

11 Returned $3,000 worth of snowboards ( from the Aug. 1 purchase ) to Burton Snowboard

Manufacturing Company.

18 Sold $1,500 ( plus HST ) worth of snowboards to Martin Gonzalez ( on account ). The

cost of the snowboards was $900.

22 Martin Gonzalez returned $500 worth of snowboards ( from the Aug. 18 sale ). The cost

of the snowboards was $300 and they were returned to inventory.

30 Paid the quarterly remittance of HST to the Receiver General. The HST Payable

was $ 4,000 and the HST Recoverable was $ 6,000 at the end of

the quarter.

Instructions:

Prepare the journal entries for the month of August, 2022.