A company receives $99, of which $9 is for PST (provincial sales tax). The journal entry to record the sale would include a
A) debit to Cash for $90.
B) debit to PST Expense for $9.
C) credit to PST Payable for $9.
D) debit to Sales for $99.

Question

Quizplus · Accepted Answer

The company should credit PST Payable for $9 to record the liability for the sales tax collected from the customer.

A Company Receives $99, of Which $9 Is for PST