Asked by Denise Rodriguez on Jul 03, 2024

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Harmonized Sales Tax (HST) collected by a retailer are expenses

A) of the retailer.
B) of the customers.
C) of the government.
D) that are not recognized by the retailer until they are submitted to the government.

Harmonized Sales Tax

A combined tax that merges a country's or region's general sales tax with its value-added tax, designed to simplify the taxation system.

Retailer

A business or individual that sells goods directly to consumers, acting as the final link in the supply chain between manufacturers and consumers.

Customers

Individuals or entities that purchase goods or services from a company.

  • Understand the treatment and recording of sales taxes and how they affect the financial statements.
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ZK
Zybrea KnightJul 05, 2024
Final Answer :
B
Explanation :
HST collected by a retailer is considered an expense of the customers because it is a tax charged to customers on the purchase of goods and services, which the retailer then remits to the government.