Reference no: EM132742355

Problem 1: When an item subject to HST, what must the seller do when recording the sale?

a) credit HST Payable.

b) the seller need not record the tax separately.

c) debit HST Recoverable.

d) debit HST Payable

Problem 2: The correct journal entry for a business remitting HST to the government would be:

a) debit Bank, debit HST Recoverable, credit HST Payable.

b) debit HST Payable, credit HST Recoverable, credit Bank.

c) debit Tax Expense, credit Bank.

d) debit Tax Expense, credit HST Payable