Assume a perpetual inventory system. A purchase on credit for $1 650 including 10% GST would be recorded in the purchases journal as:
A) debit to inventory $1 500, debit to GST clearing account $150, credit to accounts payable $1 650.
B) debit to inventory $1 500, credit to accounts payable $1 500.
C) debit to inventory $1 650, credit to GST clearing account $150, credit to accounts payable $1 500.
D) none of the above
Correct Answer:
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