Question: DeGroot Limited conducts all its business in a province that
DeGroot Limited conducts all its business in a province that has an 8% sales tax as well as the 5% GST, and both taxes are applied on the value of the product or service that is sold. Assume that all of DeGroot’s sales attract both types of tax. Prepare the summary journal entry to record the company’s sales for the month of July, during which customers purchased $37,000 of goods on account.
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