A Company Purchases Inventory on Credit for $80,000

question 25

Essay

A company purchases inventory on credit for $80,000.Inventory costing $30,000 is sold on credit for $40,000.The applicable HST rate is 10%.Sales taxes are remitted on a monthly basis.Prepare the necessary journal entries for this transaction.

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Definitions:

Rules of Logic

Fundamental guidelines that govern the structure of valid arguments and sound reasoning.

Remember

The cognitive process of retrieving information or experiences from the past.

Construction Crews

Teams of workers and professionals tasked with building, repairing, or demolishing structures.

Noisy

Characterized by or producing sound, especially a lot of sound that is not pleasant or desired.