Reference no: EM132559145

Question - Bramble Corp. operates in the province of Ontario and sells merchandise on which HST must be charged at a rate of 13%. Bramble uses a perpetual inventory system and has a calendar year end.

Transactions for the business for the month of March are shown below:

Mar. 1 Received an order from Franz Madolf for a specialty item not in stock. Due to the cost and nature of the item, Bramble required Madolf to pay $700 in advance of the sale.

Mar. 4 Received $700 cash from Madolf toward the order placed on March 1.

Mar. 5 Sold merchandise on account and shipped merchandise to Marin Inc. for $26,000, plus HST terms n/30, FOB shipping point. This merchandise cost Stratton $11,300.

Mar. 7 Granted Marin a sales allowance of $1,300 (plus related taxes) for defective merchandise purchased on March 5. No merchandise was returned.

Mar. 30 Collected amount owing from Marin.

Required - Prepare the journal entries to record the March transactions of Bramble Corp.