Question: Under the periodic inventory system, what Hannah Ltd uses gardening supplies on a daily basis. Under the accrual method of accounting these supplies would be an expense of the period in which they are: is the entry for the cash purchase of 5 electric guitars at $500 each, plus 10% GST? Question Answer a. DR Purchases $2500; DR GST receivable $250; CR Bank $2750 b. DR Purchases $2750; CR Bank $275 c. DR Purchases $2750; CR Bank $2500; CR GST payable $250 d. DR Accounts payable $2750; CR Purchases $2500; CR GST payable $250