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:

Prostate Gland

A gland in the male reproductive system that produces fluid that nourishes and transports sperm during ejaculation.

Homologous

Structures or organs in different organisms that are derived from a common ancestor, displaying similarity due to evolutionary origin.

Bartholin's Glands

Glands located on either side of the vaginal opening, responsible for secreting mucus to lubricate the vagina.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.