Provincial sales taxes (PST) collected by a retailer are reported as

Question

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PST collected by a retailer is a current liability because it represents sales taxes collected from customers but not yet remitted to the government. It is not reported as revenues because it is not earned by the retailer, but rather collected on behalf of the government. It is also not reported as an expense because it is not a cost of doing business, but rather a tax collected. It is also not a non-current liability as it is expected to be remitted in the short term.

Provincial Sales Taxes (PST) Collected by a Retailer Are Reported