Riverbed Corp operates in the province of Ontario and sells merchandise on which HST must be charged at a rate of 13%. Riverbed uses a perpetual inventory system and has a calendar year end.
Transactions for the business for the month of March are shown below:

Mar. 1		Received an order from Franz Madolf for a specialty item not in stock. Due to the cost and nature of the item, Riverbed required Madolf to pay $900 in advance of the sale.
4		Received $900 cash from Madolf toward the order placed on March 1.
5		Sold merchandise on account and shipped merchandise to Marin Inc. for $29,000, plus HST terms n/30, FOB shipping point. This merchandise cost Stratton $10,900.
7		Granted Marin a sales allowance of $1,000 (plus related taxes) for defective merchandise purchased on March 5. No merchandise was returned.
30		Collected amount owing from Marin.

1) Prepare the journal entries to record the March transactions of Riverbed Corp.

2) Repeat part (a) assuming that Riverbed now operates in the province of Manitoba where PST is charged at the rate of 8% and GST is at the rate of 5%. Also assume that Riverbed has a perpetual inventory system.

Answer rating: 100% (QA)

1 Date Accounts titles and Explanation Debit Credit Mar1 No entry required M... View the full answer