Multiple choice

Use the following transaction to answer the all of the questions. A company purchases inventory on credit for $80,000. Inventory costing $30,000 is sold on credit for $40,000. The applicable HST rate is 13% on sales and purchases. HST are remitted at the end of the month. What does the journal entry look like for the purchase of inventory using the periodic inventory system? Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2 debits Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the 2 debits If I returned $10,000 worth of items I purchased. Which account(s) would I DEBIT (DR) to show this return when using the periodic system? A/R and HST Recoverable A/P and HST Payable Purchases Returns and HST Payable 4 points None of the Above 2 points If I returned $10,000 worth of items I purchased. Which account(s) would I CREDIT (CR) to show this return using the periodic system? A/P and HST Recoverable A/P and HST Payable Purchases Returns and HST Payable Purchases Returns and HST Recoverable 2 points If I received a DISCOUNT on my purchase of 3%. How much will I pay the * 3 points supplier, in cash, to pay off the entire amount? Remember, I returned $10,000 worth of goods. (Please write your answer like this: $100,000) Your answer Click all of the accounts that are affected on the sale of the inventory (in * 2 points the above example) using the periodic inventory system? Sales A/R A/P Merchandise Inventory COGS Cash Click all of the accounts that are affected on the sale of the inventory (in * 2 points the above example) using the perpetual inventory system? Sales A/R A/P Merchandise Inventory COGS Cash What is the Cost of Goods Sold on the sale of the inventory? (Please write your answer like this: $100,000) Your answer What is the value of the Merchandise Inventory account after the sale of * 4 points the inventory? Don't forget that we had Discounts and Returns. (Please write your answer like this: $100,000) Your answer Is the net amount of HST at the end of the month Payable or Recoverable? Remember you received a Discount and Returned items. Payable 2 points Recoverable 2 points What is the net amount? Remember you received a Discount and Returned items. (Please write your answer like this: $100,000) Your answer * 2 points