At the end of the quarter, Company 21 had a balance of $ 20,000 in their HST Recoverable account and $ 24,000 in HST Payable. The entry to record the quarterly remittance would be

Question

Quizplus · Accepted Answer

The company needs to offset the HST Recoverable against the HST Payable, resulting in a net payable of $4,000. The entry debits HST Payable for the full amount, credits HST Recoverable for the recoverable amount, and credits Cash for the net amount payable.

At the End of the Quarter, Company 21 Had a Balance