During the month, a company sells goods for a total of $ 113,480, which includes HST of $ 13,480; therefore, the company should recognize $ 100,000 in Sales Revenues and $ 13,480 in Sales Tax Payable.

Question

Quizplus · Accepted Answer

The total sales amount includes HST, so the sales revenue is the total amount minus the HST. The HST is recorded as a liability (Sales Tax Payable) since it is collected on behalf of the government.

During the Month, a Company Sells Goods for a Total