Hockey Hus sells hockey equipment. They have a perpetual inventory system and their store is located in Ontario with an HST rate of 13%. The following transactions took place in October:
Oct. 6 Hockey Hus purchased a skid of skates for $ 45,000 before taxes with terms 2/10, net 30, FOB shipping point from Zip Zag Inc.
16 Paid $ 1,000 for cleaning supplies for the store.
22 Due to defects in the blades, Hus returned five pairs of the skates for a credit of $ 2,000 before applicable taxes.
31 Ashwin purchased on account an additional check-out counter for the store for $ 3,500 plus applicable taxes.
Instructions
Prepare the journal entries to record these transactions.

Question

Quizplus · Accepted Answer

The Answer of Hockey Hus sells hockey equipment. They have a perpetual inventory system and their store is located in Ontario with an HST rate of 13%. The following transactions took place in October:
Oct. 6 Hockey Hus purchased a skid of skates for $ 45,000 before taxes with terms 2/10, net 30, FOB shipping point from Zip Zag Inc.
16 Paid $ 1,000 for cleaning supplies for the store.
22 Due to defects in the blades, Hus returned five pairs of the skates for a credit of $ 2,000 before applicable taxes.
31 Ashwin purchased on account an additional check-out counter for the store for $ 3,500 plus applicable taxes.
Instructions
Prepare the journal entries to record these transactions.

Hockey Hus Sells Hockey Equipment