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:

Engine Rpm

Revolutions per minute of the engine crankshaft, measuring the engine's speed and operational status.

Braking Cycles

The repetition of applying and releasing brakes over time, affecting their performance and wear.

Allison Transmission

A manufacturer known for producing automatic transmissions for medium and heavy-duty commercial vehicles, as well as military vehicles.

Separate Clutches

Separate clutches refer to systems where multiple clutches are used independently to control different sets of gears, allowing for more efficient transmission and power distribution in heavy machinery or performance vehicles.