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PERIODIC Purchases 1000 HST Recoverable 143 Freight-In 100 A/P – Supplier 1243

You purchase inventory from a supplier for $1000 on account (plus taxes) and the supplier charges an extra $100 for shipping. PERPETUAL Merchandise Inventory 1000 HST Recoverable 143 Freight-In 100 A/P – Supplier 1243. PERIODIC Purchases 1000 HST Recoverable 143

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PERIODIC Purchases 1000 HST Recoverable 143 Freight-In 100 A/P – Supplier 1243

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  1. You purchase inventory from a supplier for $1000 on account (plus taxes) and the supplier charges an extra $100 for shipping. PERPETUAL Merchandise Inventory 1000 HST Recoverable 143 Freight-In 100 A/P – Supplier 1243 PERIODIC Purchases 1000 HST Recoverable 143 Freight-In 100 A/P – Supplier 1243

  2. You return inventory to a supplier. The inventory was worth $100 PERPETUAL A/P - Supplier 113 Merchandise Inventory 100 HST Recoverable 13 PERIODIC A/P - Supplier 113 Purchases (allowances) 100 HST Recoverable 13

  3. You sell inventory to a buyer (who is an end user) for $2000 plus taxes. The inventory was worth $900 and you charge for shipping using a third party (FedEx)  $100 plus taxes PERPETUAL A/R - Buyer 2373 Cost of Goods Sold 900 Sales 2000 HST Payable 260 Shipping Payable 113 Merchandise Inventory 900 PERIODIC A/R - Buyer 2373 Sales 2000 HST Payable 260 Shipping Payable 113

  4. Inventory is returned to you for $1000 plus taxes. The inventory was worth $500 PERPETUAL Sales (allowances) 1000 HST Payable 130 Merchandise Inventory 500 A/R – Buyer 1130 Cost of Goods Sold 500 PERIODIC Sales (allowances) 1000 HST Payable 130 A/R – Buyer 1130

  5. You pay off a $100 account with a 2/10, n/30 payment plan and you get the discount PERPETUAL A/P - Supplier 100 Cash 98 Discounts earned 2 PERIODIC A/P - Supplier 100 Cash 98 Discount on Purchases 2

  6. A customer pays off an account to you worth $500. You offer a 1/15, n/30 payment plan and the customer gets the discount PERPETUAL Cash 495 Discounts on Sales 5 A/R – Buyer 500 PERIODIC Cash 495 Discounts on Sales 5 A/R – Buyer 500

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