On 1 November 2022, MERAK Bhd sold a lorry to a customer. MERAK Bhd also agreed...

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On 1 November 2022, MERAK Bhd sold a lorry to a customer. MERAK Bhd also agreed to service the lorry for a two-year period from 1 November 2022 for no additional charge. The total amount payable by the customer for this arrangement was agreed at 305,000$. The standalone selling price of the lorry was 250,000$ and MERAK Bhd would normally expect to receive 60,000$ in consideration for providing two-years' servicing of the lorry. The customer was offered a credit term of 2/10 net 40. Required: Analyse how these transactions should be treated by MERAK Bhd for the year ended 30 November 2022 in accordance with five steps model in MFRS 15. On 1 November 2022, MERAK Bhd sold a lorry to a customer. MERAK Bhd also agreed to service the lorry for a two-year period from 1 November 2022 for no additional charge. The total amount payable by the customer for this arrangement was agreed at 305,000$. The standalone selling price of the lorry was 250,000$ and MERAK Bhd would normally expect to receive 60,000$ in consideration for providing two-years' servicing of the lorry. The customer was offered a credit term of 2/10 net 40. Required: Analyse how these transactions should be treated by MERAK Bhd for the year ended 30 November 2022 in accordance with five steps model in MFRS 15.

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