The AnsW hall Question 19: On 31 Dec, 2014, Merigo Co sold goods to a customer...

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The AnsW hall Question 19: On 31 Dec, 2014, Merigo Co sold goods to a customer for $ 10 million, representing a mark-up on cost of 25%; in order to encourage sales, Merigo Co has given the customer interest free credit with the total amount becoming payable in three years time. Interest rates are currently 4% per annum, meaning that the present value of $ 10 million is $ 8.9 million and the present value of $8 million is $ 7.1 million. What amount should Merigo Co record as revenue in the statement of profit or loss 2014? year ended 31 December The AnsW hall Question 19: On 31 Dec, 2014, Merigo Co sold goods to a customer for $ 10 million, representing a mark-up on cost of 25%; in order to encourage sales, Merigo Co has given the customer interest free credit with the total amount becoming payable in three years time. Interest rates are currently 4% per annum, meaning that the present value of $ 10 million is $ 8.9 million and the present value of $8 million is $ 7.1 million. What amount should Merigo Co record as revenue in the statement of profit or loss 2014? year ended 31 December

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Markup costing is generally used when good are sold to retaile... View the full answer