Question $4\mathrm{.}14$

Part A

Treasure Limited entered into a contract with a customer on $1$ January $201,$ agreeing to provide cleaning services over a two$-$month period, ending $28$ February $201.$ The contract price was set at C$100000.$

At contract inception, Treasure Limited estimated that the customer will qualify for a rebate $($price reduction$)$ of $C40O00.$ Whether or not the customer will obtain a rebate depends on whether the customer can produce certain documentation before $28$ February $201.$

Treasure Limited provided the services for the months of January and February $20$X$1.$

$30$

GAP. Graded Questions

Revenue from contracts with customers

The customer made a partial payment of C$70000$ on $5$ February $201$ but had still not presented Treasure Limited with the required documentation by $28$ February $201.$

Required:

a$)$ Show the joumals that Treasure Limited must process relating to the information presented above. Treasure Limited has a $28$ February year$-$end.

b$)$ Explain the reasoning behind each of your journals with reference to IFRS $15$ Revenue from contracts with customers.

dgnore fass allowances.