A Company Purchases Inventory on Credit for $40,000

question 21

Essay

A company purchases inventory on credit for $40,000.Inventory costing $30,000 is sold on credit for $50,000.The applicable HST rate is 10%.Sales taxes are remitted on a monthly basis.Prepare the necessary journal entries for this transaction.

Comprehending the principles underlying the taxation and spending powers of Congress.

Understand the difference between programmed and nonprogrammed decisions and their applications in organizational contexts.

Recognize the importance and role of crisis management programs in organizations.

Identify the criteria used in making ethical decisions and assessing their impact on stakeholders.