A sale of merchandise on account to a final user
A sale of merchandise on account to a final user for $13,750 is subject to a 6% PST and a 5% GST.
(a) Should the PST and the GST be recorded at the time of sale or when payment is received?
(b) What is the amount of the sale?
(c) What is the amount debited to Accounts Receivable?
(d) What are the titles of the accounts to which the $825 ($13,750 × 6%) and $687.50 ($13,750 × 5%) are credited?
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