this problem have 3 parts a, b and c and we have to record journal entries for each.

journal entries for part A . 1.Record the purchase of inventory on credit plus applicable ITC. 2.Record the cash sales plus applicable Sales tax. 3.Record the cost of sales 4.Record the refund of applicable Sales tax from Receiver General for Canada.. . JOUNAL ENTRIES FOR PART B 1.Record the purchase of inventory on credit plus applicable ITC. 2.Record the cash sales plus applicable Sales tax. 3.Record the cost of sales 4.Record the refund of applicable Sales tax from Receiver General for Canada. 5.Record the remittance of PST to provincial authorityBC Ministry of Finance. JOURNAL ENTRIES FOR PART C 1.Record the purchase of inventory on credit plus applicable ITC. 2.Record the cash sales plus applicable Sales tax. 3.Record the cost of sales 4.Record the refund of applicable Sales tax from Receiver General for Canada.

EXHIBIT 10.6 Sales Tax Rates, Effective January 1, 2016 PST Rate GST Rate HST Rate Regions with GST Only Alberta Northwest Territories Nunavut Yukon 5% 5% 5% 5% Regions with GST and PST British Columbia 7% 8% q.q75% 5% 5% 5% 5% 5% " Saskatchewan Regions with HST New Brunswick Newfoundland and Labrador** Nova Scotia 13% 15% 15% 14% A Harmonized Sales Tax (HST) is applied in place of PST and GST. HST is the combination of the PST with the GST for a total sales tax. For example, for both New Brunswick and Ontario the PST rate of 8% is combined with the GST of 5%, resulting in an overall HST of 13%. **The Newfoundland 2015 budget announced that the rate increases from 13% to 15%, effective 2016