1 Delloel Ltd. on the note's maturity date. X EXERCISE 12-3 Baldwin Inc. operates in a jurisdiction that levies two types of sales taxes: a federal, 6%, refundable goods and services tax and a provincial, 4% non-refundable sales tax. Both taxes are calculated on the base cost of the item, that is, there is no tax on the tax, and apply to all transactions. During the current year, the following transactions occurred: a. Inventory was purchased on account at a cost of $10,000, plus applicable taxes. b. Equipment was purchased for cash at a cost of $3,000, plus applicable taxes. C. Sales on account were made for proceeds of $16,000 plus applicable taxes. d. Cash sales were made for proceeds of $5,000 plus applicable taxes. e. At the end of the year, the net amounts of all sales taxes owing were remitted to the federal and provincial government authorities. Required: Prepare journal entries to record the transactions detailed above