Refer
to the data for DeGroot Limited in BE13-7. Assume now that DeGroot purchased
$29,400 of merchandise inventory in July on which 5% GST was levied. DeGroot
uses the periodic inventory system. Prepare the summary entry to record the
purchases for July and the subsequent entry to record the payment of any GST
owing to the government.
|
Purchases...............................
|
29,400
|
|
|
GST Recoverable ($29,400 X 5%)..........
|
1,470
|
|
|
Accounts
Payable...................
|
|
30,870
|
|
|
|
|
|
GST Payable.............................
|
1,850
|
|
|
Cash...............................
|
|
380
|
|
GST
Recoverable....................
|
|
1,470
|
