DeGroot
Limited conducts all its business in a province that has an 8% sales tax as
well as the 5% GST, and both taxes are applied on the value of the product or
service that is sold. Assume that all of DeGroot’s sales attract both types of
tax. Prepare the summary journal entry to record the company’s sales for the
month of July, during which customers purchased $37,000 of goods on account.
|
Accounts Receivable.....................
|
41,810
|
|
|
Sales..............................
|
|
37,000
|
|
Sales
Taxes Payable ($37,000 X 8%).
|
|
2,960
|
|
GST
Payable ($37,000 X 5%).........
|
|
1,850
|
