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.What is the amount of the accounts receivable as a result of HST payment to the Canada Revenue Agency?

Question

Quizplus · Accepted Answer

The amount of accounts receivable includes both the sales amount and the HST. The sales amount is 4,000 batteries * $150 = $600,000. The HST is 6% of $600,000, which is $36,000. Therefore, the total accounts receivable is $600,000 + $36,000 = $636,000.

During the First Quarter of Year 1, the Company Sold