Ajax had cash sales totaling $14,000 of merchandise to a variety of customers ($12,000 to end-users and $2,000 to other businesses that will resell the items. Ajax has a COGS equal to 45% of the sales value.) Ajax expects 10% of the end-user sales to be returned for warranty repairs. RECORD TODAY’S ENTRIES, including the warranty estimate.

December 31, 2016:

Ajax received $13,000 from a customer in exchange for Ajax providing cleaning services for the next 4 months. Ajax recorded accrued interest on the loan today. They also paid the outstanding balance to the Federal Government for the GST owing. (note: the GST account(s) should be at a zero balance after recording this entry.) Finally, warranty repairs totaling $750 were completed; since Ajax subcontracts all repair work, use the Cash account for the full amount of repairs. RECORD TODAY’S ENTRIES.

Record journal entries

GST balance repay the GST tax

Answer rating: 100% (QA)

Journal Entries Date Particulars LF Debit Credit 15112016 Inventory Ac Dr 1000000 ... View the full answer