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On July 10,
Keller
Company, a business located in Alberta, purchased
$15,000
of inventory for resale on account. On July 25,
Keller
recorded the sale of that merchandise on account for
$20,000
plus tax. On August 10,
Keller
remitted GST to the Receiver General. They had no other sales or input tax credits. Journalize all three transactions.
Begin by journalizing the purchase of inventory on account. (Record debits first, then credits. Exclude explanations from journal entries.)
After jounalizing the purchase of inventory
Prepare the entry for the record of merchandise on account for 20,000 plus tax. begin with sales transaction. for July 25
After that After we have recorded the sale, we can update inventory. Recall that all of the goods purchased were sold on July 25
NOW the final jounal entry is for the GST remittance to the Receiver General.
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