During the first quarter of 2021, a company sold on credit, 2,000 truck tires at $85 each plus harmonized sales tax (HST) of 13%. The HST is paid to the federal government. Prepare the following journal entries a) On March 31, to record the sale of truck tires in the first quarter. b) On April 30, to record payment of first quarter sales taxes to the government.
During the first quarter of 2021, a company sold on credit, 2,000 truck tires at $85 each plus harmonized sales tax (HST) of 13%. The HST is paid to the federal government. Prepare the following journal entries a) On March 31, to record the sale of truck tires in the first quarter. b) On April 30, to record payment of first quarter sales taxes to the government.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the first quarter of 2021, a company sold on credit, 2,000 truck tires at $85
each plus harmonized sales tax (HST) of 13%. The HST is paid to the federal government.
Prepare the following journal entries
a) On March 31, to record the sale of truck tires in the first quarter.
b) On April 30, to record payment of first quarter sales taxes to the government.
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