The following selected transactions were completed by

Gutters Co during #1718

The following selected transactions were completed by Gutters Co. during May and June of the
current year. The company sells irrigation supplies to both wholesalers and retail customers.
The PST rate is 6%.May 2. Sold merchandise on account to Tamarack Co. (a wholesaler),
$13,000, terms FOB shipping point, n/eom. The cost of the goods sold was $7,000.6. Sold
merchandise for $15,000 to retail cash customers. The cost of goods sold was $6,500.7. Sold
merchandise on account to Fir Inc. (a retail company), $20,000, terms FOB destination, 2/10,
n/30. The cost of goods sold was $11,000.12. Purchased supplies and inventory on account
from Boyd Company, for $2,000 and $2,500, respectively.17. Received cheque for amount due
from Fir Inc. for sale on May 7.17. Issued credit memo for $1,600 to Tamarack Co. for
merchandise returned from sale on May 2. The cost of the goods returned was $900.29.
Received cheque for amount due from Tamarack Co. for May 2 sale, less returned
merchandise.Jun. 30. Paid appropriate taxes.InstructionsJournalize the entries in one of the
scenarios below to record the selected transactions for the month of May and the July payment,
assuming the use of the perpetual inventory system.a. The PST rate is 4 %. On December 31,
paid provincial sales taxes payable of $6,000.b. The PST is 4% and the GST is 5%. On
December 31, paid provincial sales tax payable of $3,000. Also on December 31, filed goods
and services tax - GST Paid on Purchases was $6,000 and GST Charged on Sales was
$8,000.c. The HST is 11%. Filed harmonized sales tax - HST Paid on Purchases was $6,000
and HST Charged on Sales was $8,000.View Solution:
The following selected transactions were completed by Gutters Co during

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