R &D Company has been practicing a policy of allowing its customers to return faulty goods within
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Question:
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
Related Book For
Applied Statistics in Business and Economics
ISBN: 978-0073521480
4th edition
Authors: David Doane, Lori Seward
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