Select transactions and other information pertaining to Best City in the World Inc. (BCW) are detailed below. 

Facts: 

a. BCW is domiciled in Charlottetown, Prince Edward Island, and all purchases and sales are made in PEI. 

b. The HST rate in PEI is 15%. 

c. The balances in BCW’s HST recoverable account and HST payable account as at March 31, 2018, were $8,000 and $12,000, respectively. 

d. BCW uses a perpetual inventory system. 

e. Inventory is sold at a 100% markup on cost. (Cost of goods sold is 50% of the sales price.) 

Select transactions in April 2018: 

1. BCW purchased inventory on account at a cost of $10,000 plus HST. 

2. BCW purchased equipment on account at a cost of $20,000 plus HST. It paid an additional $500 plus HST for shipping. 

3. Cash sales—BCW sold inventory for $15,000 plus HST. 

4. Sales on account—BCW sold inventory for $20,000 plus HST. 

5. BCW paid the supplier in full for the equipment previously purchased on account. 

6. At the end of the month, BCW remitted the net amount of HST owing to the Canada Revenue Agency. 

Required:

Prepare summary journal entries to record the transactions detailed above.