Singh Company received payment in full within the credit period for goods sold for $400 plus 13% HST. Terms of the sale were n/30. Which entry records this transaction?

Question

Quizplus · Accepted Answer

The correct entry is D) Debit Cash, $452, credit Accounts Receivable, $452. This is because the payment includes the 13% HST on the $400 sale, making the total payment $452 ($400 + $52 HST). The cash account is debited to reflect the increase in cash, and the accounts receivable is credited to reflect the settlement of the owed amount.

Singh Company Received Payment in Full Within the Credit Period