Wander sports is a large sports good retailer. It purchases tennis rackets for $110 each from Aussie tennis goods, a large manufacture of tennis products. Wander sports tends to sell the tennis rackets at a 200% mark up to its customers. In January last year it purchased 100 rackets. However, in April, it discovered that 10 of these rackets had design faults and it returned them to the manufacture and obtained a full refund. Explain the GST consequences of this arrangement for both parties. (Relevant cases and legislation, and increase and decreasing adjustments)

Answer rating: 100% (QA)

In this scenario Wander Sports purchased tennis rackets for 110 each from Aussie Tennis Goods and se... View the full answer