A Company,using a Perpetual Inventory System,sells Goods on Credit for $10,000.The

question 18

Essay

A company,using a perpetual inventory system,sells goods on credit for $10,000.The applicable PST rate is 5% and the cost of goods sold was $6,000.Sales taxes are remitted on a monthly basis.Prepare the necessary journal entries for this transaction.

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Definitions:

Initial Cost

The original outlay or expense associated with acquiring an asset or launching a project, not including operational or maintenance costs.

Internal Rate of Return

The rate of return that brings the total net present value of a project's cash flows to zero.

Investment

Investment is the allocation of resources, typically money, with the expectation of generating an income or profit.

Internal Rate of Return

A metric used in capital budgeting to estimate the profitability of potential investments, representing the rate of return at which the net present value of costs and benefits of the project equals zero.