c ii Explain how a sale for 5000 including freight of 200 to

(c) ii) Explain how a sale for $5,000 including freight of $200 to a customer (goods cost $4,000) would be recorded in MYOB (assume GST applies). You need to provide the journal entries but do not need to include $ amounts, only the accounts debited and credited.

Solution

1) Customer account Dr

Gst account. Dr

To sales account

2) customer account dr 200

To cash/bank acct 200

( freight paid on behalf of customer)

3) cash/bank Dr

To customer account

(being amount of freight received)