Alana is not registered for sales tax purposes. She has recently received an invoice for goods for resale which cost $500 before sales tax, which is levied at 15%. The total value was therefore $575. What is the correct entry to be made in Alana’s general ledger in respect of the invoice?
A、Dr Purchases $500, Dr Sales tax $75, Cr Payables $575
B、Dr Purchases $575, Cr Sales tax $75, Cr Payables $500
C、Dr Purchases $500, Cr Payables $500
D、Dr Purchases $575, Cr Payables $575
A、Dr Purchases $500, Dr Sales tax $75, Cr Payables $575
B、Dr Purchases $575, Cr Sales tax $75, Cr Payables $500
C、Dr Purchases $500, Cr Payables $500
D、Dr Purchases $575, Cr Payables $575
【参考答案及解析】
Dr Purchases $575 and Cr Payables $575.Alana is not registered for sales tax purposes and therefore cannot reclaim the input sales tax of $75
Dr Purchases $575 and Cr Payables $575.Alana is not registered for sales tax purposes and therefore cannot reclaim the input sales tax of $75