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Former Member
Jan 04, 2010 at 02:30 AM

Selling Price at cost Plus output tax

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Hi,

We are selling our merchandise at cost.

What condition should we maintain so that output tax will be added to the price at cost?

Currently, cost is already inclusive of the output tax. So, in financial statement preparation cost of sales is higher than the sales. \

Assuming cost of sales is 25.00, sales will be recorded at 22.32 and output tax of 2.67.

Now, we want to present it as cost of sales is 25.00, sales at 25.00 and output tax is 3.00.

Thank you.

Rachelle