Question

Journalize the entries to record a sale in each of the scenarios below. The sale was for $3,400 of merchandise on account. The cost of goods sold was $2,000. Assume a perpetual inventory system. On the same day, remittance was made for taxes collected.
a. The goods were subject to a PST of 5%. The company remitted $41,950 to the provincial government for taxes collected.
b. The goods were subject to a PST of 7% and a GST of 5%. The company remitted $41,950 to the provincial government for taxes collected and the difference between $58,730 for federal taxes collected and $45,333 for federal taxes paid.
c. The goods were subject to an HST of 9%. The company remitted the difference between $58,730 for federal taxes collected and $45,333 for federal taxes paid.


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  • CreatedSeptember 15, 2015
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