GBC Electronics operates a business in Ontario and had the following transactions in the month of December of 2018. The HST in Ontario is 13% and the company uses a perpetual inventory system. Dec 2 Sold a television set for $2,500 plus HST. The cost of the television set was $1,800. The customer paid in cash. Dec 10 The customer returned the television set for a full refund. The television set was in good condition and can be resold. Dec 15 GBC purchased on account 20 television sets from Sony for resale at a total cost of $30.000 plus HST. Dec 20 GBC returned one television set back to Sony as it was damaged. The cost of the television set was $1,500 plus HST. Dec 22 GBC purchased office supplies for $500 plus HST. The company paid in cash. Dec 30 Remitted the net HST to the federal government. The HST payable account had a balance of $2,200 and the HST Recoverable had a balance of $1,900. 

Required: Prepare the above journal entries. Show your calculations

Answer rating: 100% (QA)

To prepare the journal entries for the transactions in December 2018 we will record each transaction separately Here are the journal entries Dec 2 Sol... View the full answer