Question: On 3 0 June 2 0 2 4 ( the reporting day ) , ABC Ltd estimates that it will be required to pay $

On 30 June 2024(the reporting day), ABC Ltd estimates that it will be required to pay $100000 in four years time (i.e., on 30 June 2028) to settle a warranty obligation. The riskfree discount rate applied is 5%.
REQUIRED:
How should the provision be accounted for at 30 June 2024? Show your calculations.
Prepare the journal entries for 30 June 2024 and 30 June 2025.

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