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Question 1: Using the periodic inventory system, prepare general journal entries for the following transactions of Heidelberg Housewares, assuming the business is registered for the GST and that GST has to be added to the figures given.
1. Purchased inventory on credit for $58 200.
2. Sold inventory for $18 800 in cash and $16 730 on credit.
3. A customer returned goods she had bought on credit for $1840.
4. Purchased a computer to be used in the business for $2400 cash.
5. Returned inventory for credit that was previously purchased for $1060.
6. Purchased inventory on credit with $12 800 list price. A 25% trade discount applies.
7. Sold inventory for $7600 on credit.
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