Redland Sports Co Ltd is a large sport retailer. It purchases cricket bats for $110 per bat
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Redland Sports Co Ltd is a large sport retailer. It purchases ‘cricket bats’ for $110 per bat from Cricket and Accessories Ltd, a large importer of cricket bats. Redland Sports Co Ltd (a GST registered entity) plans to sell the bats at a 200% mark-up to its customers. In January last year, Redland Sports purchased 100 shelled bats. However, in April, it was discovered that 10 bats are default. Redland Sports Co Ltd returned them to Cricket and Accessories Ltd and obtained a full refund. Explain the GST consequences of this arrangement for both parties (Maximum 400 words)
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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