In this chapter, you learned about accounting for credit notes, refunds, and discounts. You will now apply these concepts to the regular activities of KBC Decorating Co. From this point forward, some sales invoices will carry terms of 2/10,n/30. If the invoice is paid within the discount period, the discount will be based on the pre-tax value of the goods. Credit notes and refunds should be recorded in the same journal as the original entry to which the credit note or refund relates. Take care to record these amounts in brackets as they are to be deducted from the accounts affected.

20 Mar. 1 Sold paint and supplies, $600, and wallpaper, $500, to K. Young Painting on terms of 2/10,n/30. Add taxes as usual. (Check last months Sales Journal to see what invoice number this should be.) 1 Paid rent for March, $2,500 plus GST. (Check last months payment journal to see what cheque number should be used here.) 3 Paid the electricity bill for February, $184 plus taxes. 3 Paid the heating (gas) bill for February, $510 plus taxes. 3 Paid a courier for the delivery of the goods to K. Young Painting, $45 plus

4 Received payment from Beavis & Sons on Invoice #1. Check their account to find the amount owing. 5 Paid the phone bill, $188.50 plus taxes. 7 Paid Major Office Supplies for the amount owing on Invoice #122. Check their account to find the amount owing. 7 Paid Reynolds Paper for the amount owing on Invoice #87. 11 Received payment from K. Young Painting on Invoice #5. This invoice is being paid within the discount period. 12 Bought paint and supplies from Coleman Industries, $3,000 plus GST, on their Invoice #407 dated March 11. Terms 2/10,n/30. 12 Paid a courier for delivering to us the goods bought from Coleman Industries, $38 plus taxes. 12 Sold wallpaper to Beavis & Sons, $570 plus taxes, on terms n/30. 14 Received payments from Dayson & Son, Jay-Mar Co., and S. Miller for the invoices owing. 15 Returned defective supplies to Coleman Industries on their Invoice #407, $200 plus GST. They have issued a credit note to us. 18 A couple of rolls of wallpaper sold to Beavis & Sons on the 12th are badly damaged. We have issued credit note #6CN for $85 plus taxes. 20 Made a donation to the Cancer Society, $500, by cheque. 20 Bought paint and supplies, $3,500 plus GST, from Rainbow Supplies on their Invoice #49, terms 1/10,n/30. 22 Remitted the provincial sales tax for Februarys sales. Check the balance in the PST Payable account at the end of February for the amount. Since this amount is more than $400, we are entitled to keep 5% as our commission. Make the necessary entry in the Cash Payments Journal just as you did last month.