On March 30, Francine's Bakery purchased $1,000, plus 13% HST, of merchandise on account from Smithers Company. The goods were shipped F.O.B. shipping point. The freight charge of $80 (includes HST) was paid by Williams Company and added to the invoice. The amount to record in the Accounts Payable account is

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The initial purchase of merchandise was for $1,000 plus 13% HST, which equals $1,130. However, since the goods were shipped F.O.B. shipping point, the buyer (Francine's Bakery) is responsible for the shipping costs. Therefore, the $80 freight charge should not be included in the amount to record in the Accounts Payable account. The amount payable to Smithers Company is therefore $1,130 - $80 = $1,050.

On March 30, Francine's Bakery Purchased $1,000, Plus 13% HST