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A Business Sold Some Inventory on Credit for $5,000 Before

Question 109

Multiple Choice

A business sold some inventory on credit for $5,000 before taxesand 7% provincial sales tax (PST) . The business uses a perpetual inventory system. What is the amount that will be recorded in the GSTpayable account as a result of this sale?


A) $350 credit
B) $250 credit
C) $350 debit
D) $250 debit
E) None of these answers is correct.

Correct Answer:

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