Question: CASE STUDY PAYMENT BY INSTALMENTS Johnson Ltd is entering into a contract to sell boat products to Fisher Ltd for $50 000. The agreement allows

CASE STUDY PAYMENT BY INSTALMENTS Johnson Ltd is entering into a contract to sell boat products to Fisher Ltd for $50 000. The agreement allows Fisher Ltd to pay for these goods by equal instalments, the first instalment being required on delivery and the remainder to be paid every 6 months for the next 2 years. The boat products are delivered to Fisher Ltd on 1 January 2020. Johnson Ltd determine that an appropriate discount rate for interest on this transaction is 5% per annum. Required Advise Johnson Ltd on how the company is to account for the revenue from this transaction. CASE STUDY

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