Problem
HARMONIZED SALES TAX (HST)
LES MEUBLES D'ANTAN is a furniture retailer specializing in the sale of quality solid wood furniture. The company uses a periodic inventory system to record inputs and outputs of furniture stocks. The amounts of the following transactions are amounts before the harmonized sales tax.
Below you will find the transactions made by LES MEUBLES D'ANTAN in November 2018:
1st Nov Purchase on credit of 20 offices at a cost of $350 each and 30 chairs at a cost of $85 each at Wholesale Store.
3 Sale on credit of 1 office and 4 chairs to M. Office, a regular customer. The amount of the sale is $1,200.
7 nov Receipt and payment of an electricity bill for the store: $850. Payment of the purchase made on November 1, 2011.
10 nov Sale on credit of 2 offices at a sale price of $720 each and 6 chairs at a sale price of $120 each. The customer, Mr. Lavigne, promises to pay the amount due within the next 30 days.
11 nov Receipt and payment to Bell of the October phone bill: $125.
13 nov Return of a chair following an imperfection. MR. Lavigne only wants a credit note to be issued to him.
16 nov Cash purchase of a merchandise delivery truck at a cost of $35,000 from Carle Ford.
20 nov Purchase on credit of 15 dressers at a cost of $250 each at Wholesale Store.
22 nov Return of a dresser purchased on November 20, given an imperfection. The manufacturer issued a credit note in favor of the buyer: LES MEUBLES D'ANTAN.
24 nov Payment made for the truck's fuel filling: $96.05 tax included, at Ultramar.
26 nov Cash sale of a dresser at the sale price of $400 and four chairs at a price of $120 each to Mrs. Casgrain.
Required
• Enter in the general journal, the entries to record the transactions for the month of November taking into account the harmonized sales tax (HST).
• Calculate the amount of the harmonized sales tax (HST) that the company will have to give to the Canada Revenue Agency in December 2018.