Question

1. If we sold 20,000 items of inventory for $770 each on credit (GST inclusive), how much is the total amount of Sales Revenue recorded?

$16,800,000

$15,400,000

$14,000,000

none of the above

2. If we purchased 5,000 items of inventory for $44 each by cash (GST inclusive), then return 10 of these items back to supplies since the quality is not up to standard. How much is the total amount of Inventory value that we should reduce from our accounting book (how much should we credit Inventory)?

$110

$440

$400

none of the above

Answer 1

If we sold 20,000 items of inventory for $770 each on credit (GST inclusive), how much is the total amount of Sales Revenue recorded?
$16,800,000
$15,400,000
$14,000,000	Correct
none of the above	Sales Revenue = 20,000 x $770  x 1/11= 14,000,000
	The current rate of GST is 10%. = 10/110
2. If we purchased 5,000 items of inventory for $44 each by cash (GST inclusive), then return 10 of these items back to supplies since the quality is not up to standard. How much is the total amount of Inventory value that we should reduce from our accounting book (how much should we credit Inventory)?
$110
$440
$400	Correct
none of the above	GST = $44 x 1/11 =4
	Inventory = 10 x (44-4) = 400