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:

Auction Without Reserve

A type of auction in which the item for sale will be sold regardless of the price since there is no minimum bidding threshold set.

Diamond Ring

A piece of jewelry featuring a diamond set into a ring, often used as a symbol of commitment or status.

Bilateral Contract

A mutual agreement between two parties where each promises to perform an act in exchange for the other's act.

Unilateral Contract

An agreement in which only one party makes a legally enforceable promise to pay or provide other benefits if the other party performs a specific task.