Question 1: Green Air enters into a contract with a customer to supply furniture on 31...
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Question 1: Green Air enters into a contract with a customer to supply furniture on 31 December 2021. Control of the furniture transfers to the customer on that date. The price stated in the contract is $650,000 and is due for payment on 31 December 2024. Market rates of interest available to this particular customer are 10%. Required: Explain how this transaction should be accounted for in the financial statements of Green Air for the year ended 31 December 2021 and 2022 Question 1: Green Air enters into a contract with a customer to supply furniture on 31 December 2021. Control of the furniture transfers to the customer on that date. The price stated in the contract is $650,000 and is due for payment on 31 December 2024. Market rates of interest available to this particular customer are 10%. Required: Explain how this transaction should be accounted for in the financial statements of Green Air for the year ended 31 December 2021 and 2022
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Date Account Dr Cr 20211231 Accounts Receivable 650000 Sales 650000 Being Goods Sol... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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