Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15 plus 5% GST. The invoice included a 6% provincial sales tax, 5% GST, and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the original sale would include

Question

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The original sale would be recorded by debiting Accounts Receivable for the total amount including taxes: 25 necklaces x $25 = $625, plus 6% PST and 5% GST, which totals $693.75.

Sue's Jewelry Sold 25 Necklaces for $25 Each to a Credit