Question

Claudex Camping Store uses a perpetual inventory system and is located in Toronto, Ontario where the HST rate is 13%. The following transactions took place during March, 2020:

Mar. 1 Paid rent of $ 2,500 (plus HST) for March to the landlord.
5 Purchased $ 35,000 (plus HST) worth of camping equipment on                           account from Outdoor Comfort to stock up the store for the season.
9 A new laptop was purchased for the office to update their equipment. The price of the laptop was $ 1,200 cash (plus HST).
12 Returned $ 2,000 of camping equipment to Outdoor Comfort.
18 Sold $ 5,300 (plus HST) of camping equipment to Great Adventures on account. The
                          cost of the camping equipment to Claudex was $2,200.
          30 Paid the quarterly remittance of HST to the Receiver General. The HST Payable
                          was $ 13,600 and the HST Recoverable was $ 12,400 at the end of
                          the quarter.

Instructions:

Prepare the journal entries for the month of March, 2020.

Answer 1

The Journal Entries are backbone of accounting, there are three types of accounts, Real,Nominal & personal.

and the Golden rules drives the same.The whole accounting system runs over these simple rule

The Jounral Entries as asked are as follows: