Jordan Corp.operates in Ontario, selling a variety of goods.For most of these goods, Jordan must charge 13% HST, for some they only have to charge 5% HST; while a very few are tax exempt.During June of this year, the company reported sales of $200,000, on which 70% were charged 13% HST, 25% were charged only 5% HST, and the rest were tax exempt sales. The total amount of HST collected in June was

Question

Quizplus · Accepted Answer

To calculate the total HST collected:  - 70% of $200,000 is $140,000, charged at 13% HST: $140,000 * 0.13 = $18,200.  - 25% of $200,000 is $50,000, charged at 5% HST: $50,000 * 0.05 = $2,500.  - The remaining 5% of $200,000 is tax exempt, so no HST is collected.  Total HST collected = $18,200 + $2,500 = $20,700.