A Business Sold Some Inventory on Credit for $5,000 Before

question 66

Multiple Choice

A business sold some inventory on credit for $5,000 before taxes. The sale is subject to 5% goods and services tax (GST) and 7% provincial sales tax (PST) . The business uses a perpetual inventory system. What is the amount that will be recorded in the GST payable account as a result of this sale?

• A) $250 debit
• B) $250 credit
• C) $350 debit
• D) $350 credit
• E) None of these answers is correct.

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