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Pino Inc. is a BC-based wine producer. In anticipation of a particularly bounteous grape harvest and a potential problem in obtaining a sufficient volume of shipping crates, Pino entered into a noncancellable agreement with Lumber Products Ltd. to supply 115,000 wooden crates at a price of $18 per crate plus 7% PST and 5% GST. During the current fiscal year, Pino purchased 28,750 crates. Near the end of the year, however, a restrictive tariff on the import of crates from the United States was lifted. Crates then became readily available from other suppliers for only $14 plus tax. Required: 1. Prepare the journal entry to record the purchase of crates during the current fiscal year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the purchase of 50,000 crates @ $24. Credit Note: Enter debits before credits. Transaction General Journal 1 Crate Inventory GST payable Accounts payable Debit 1,200,000 60,000 1,260,000 2. Prepare the journal entry to record the impact of the price drop. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the provision for loss on the contract. Note: Enter debits before credits. Credit Transaction 1 General Journal Estimated loss on onerous purchase contract Provision for onerous contract Debit 362,250 362,250 Record entry Clear entry View general journal

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