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Gurpreet's Distribution purchases merchandise inventory from several suppliers. On August 1, 2020, Gurpreet's Distribution purchased from Theo Supplier $105,000 of inventory on account. On September 15, 2020, Gurpreet's Distribution sold inventory to Dakota (end consumer) with a sales price of $120,000, which included $80,000 COGS for the inventory. On October 15, 2020 Gurpreet's Distribution remitted the applicable PST and GST.
Required
Problem 1: Journalize Gurpreet's Distribution transactions on August 1, 2020, September 15, 2020 and October 15, 2020, including PST and GST assuming it is located in British Columbia. (PST = 7%, GST = 5%)
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