Marvin's Rooms is a new business which started on January 1, 2020. Its sales during its first four quarters of operation were as follows: On what date will Marvin's Rooms have to begin collecting GST?

Question

Marvin's Rooms is a new business which started on January 1, 2020. Its sales during its first four quarters of operation were as follows:  On what date will Marvin's Rooms have to begin collecting GST?

Quizplus · Accepted Answer

Marvin's Rooms will have to begin collecting GST on the first day of the month following the month in which it exceeds $30,000 in cumulative sales. Based on the sales figures provided, the cumulative sales will reach $30,000 in the third quarter (July-September) which means Marvin's Rooms will have to begin collecting GST on August 1, 2020. Therefore, the correct answer is (C) August 1, 2020.

Marvin's Rooms Is a New Business Which Started on January