Question

Journalize each of the following transactions assuming a perpetual inventory system and PST at 8% along with 5% GST. Note: Any available cash discount is taken only on the sale price before taxes.

Aug.	1	Purchased $1,600 of merchandise for cash.
	2	Purchased $6,400 of merchandise; terms 1/10, n/30.
	5	Sold merchandise costing $3,200 for $4,800; terms 3/10, n/30.
	12	Paid for the merchandise purchased on August 2.
	15	Collected the amount owing from the customer of August 5.
	17	Purchased $5,600 of merchandise; terms n/15.
	19	Recorded $6,600 of cash sales (cost of sales $5,400).

Answer 1

Date	Account title and explanation	Debit	Credit
Aug 1	Merchandise	$1600
	Cash		$1600
2	Merchandise	6400
	Accounts payable		6400
3	Accounts receivable	4800
	merchandise		3200
	Profit and loss		1600
12	Accounts payable	6400
	Cash		6400
15	Cash	4800
	Accounts receivable		4800
17	Merchandise	5600
	Accounts payable		5600
19	Cash	6600
	merchandise		5400
	Profit and loss		1200