Jo is the owner of Yummy Seafood, a seafood supermarket. The business accounts for GST on an accrual basis. Jo sells various seafood on account to various restaurants in NSW. The restaurants are also all registered for GST. Recently, Jo received a letter from one restaurant advising her that the restaurant was placed in liquidation and as a result they are not able to pay Jo's bills totalling $55,500, including GST. As a result, Jo has written off the debt. Question What is the effect of the above transactions on Jo's net amount for the relevant tax period?

Answer rating: 100% (QA)

The effect of the transaction on Jos net amount for the relevant tax period depends on w... View the full answer