R &D Company has been practicing a policy of allowing its customers to return faulty goods within six months from the date of sales, even though the company has no legal obligation to do so. Based on the past experience, it was probable that there would be such returns. R&D Company estimates that such return usually amounts to RM3,000 annually. 

Discuss the accounting treatment of the above situations in accordance to MFRS137 Provisions, Contingent Liabilities and Contingent Assets and prepare the journal entry for the above situation

Answer rating: 100% (QA)

According to MFRS 137 Provisions Contingent Liabilities and Contingent Assets a provision is an amou... View the full answer