During the first quarter of Year 1, the company sold 4,000 batteries on credit for $150 each plus HST of 6%.
-Refer to the figure General Lighting.HST must be paid to the Canada Revenue Agency at the end of the quarter.What is the amount of the current liability related to this transaction?

Question

Quizplus · Accepted Answer

The HST (Harmonized Sales Tax) on the sale of the batteries is calculated as 6% of the total sales amount. The total sales amount before tax is 4,000 batteries * $150 each = $600,000. The HST is 6% of $600,000, which is $600,000 * 0.06 = $36,000. This amount represents the current liability to the Canada Revenue Agency.

During the First Quarter of Year 1, the Company Sold