Thursday Enterprise (TE) is a supplier of product Zee and has provided you the following information:...

  

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Thursday Enterprise (TE) is a supplier of product Zee and has provided you the following information: (a) On 1 August 2018, TE entered into a six months contract with customer Alpha for sale of Zee for Rs. 250 per unit, under the following terms and conditions: . if Alpha purchases more than 5,000 units during the contract period, the price per unit would be retrospectively reduced to Rs. 215 per unit. TE's unconditional right to receive consideration would be established upon: - completion of quality control procedures by Alpha for the first order. The procedure would take a week after receiving the goods. placement of order by Alpha for subsequent orders. At the inception of the contract, TE concludes that Alpha's purchases will not exceed the 5,000 units threshold for the discount. Alpha placed the following orders: Order date 10 August 2018 25 December 2018 . Units 3,000 4,000 Delivery date (Transfer of control) 28 August 2018 15 January 2019 Payment date 12 September 2018 10 January 2019 (b) On 1 February 2019, TE entered into a six months contract with another customer Beta for sale of Zee for Rs. 250 per unit, under the following terms and conditions: if the Beta purchases more than 15,000 units during the contract period, the price per unit would be retrospectively reduced to Rs. 215 per unit. TE's unconditional right to receive consideration would be established upon delivery of goods to Beta. At the inception of the contract, TE concludes that Beta will meet 15,000 units threshold for the discount. Beta placed the following orders: (10) Order date Units 14 February 2019 10,000 1 June 2019 8,000 Delivery date (Transfer of control) 28 February 2019 15 July 2019 Payment date 20 March 2019 18 July 2019 Required: In respect of the above contracts, prepare journal entries to be recorded in the books of TE for the years ended 31 December 2018 and 2019. Thursday Enterprise (TE) is a supplier of product Zee and has provided you the following information: (a) On 1 August 2018, TE entered into a six months contract with customer Alpha for sale of Zee for Rs. 250 per unit, under the following terms and conditions: . if Alpha purchases more than 5,000 units during the contract period, the price per unit would be retrospectively reduced to Rs. 215 per unit. TE's unconditional right to receive consideration would be established upon: - completion of quality control procedures by Alpha for the first order. The procedure would take a week after receiving the goods. placement of order by Alpha for subsequent orders. At the inception of the contract, TE concludes that Alpha's purchases will not exceed the 5,000 units threshold for the discount. Alpha placed the following orders: Order date 10 August 2018 25 December 2018 . Units 3,000 4,000 Delivery date (Transfer of control) 28 August 2018 15 January 2019 Payment date 12 September 2018 10 January 2019 (b) On 1 February 2019, TE entered into a six months contract with another customer Beta for sale of Zee for Rs. 250 per unit, under the following terms and conditions: if the Beta purchases more than 15,000 units during the contract period, the price per unit would be retrospectively reduced to Rs. 215 per unit. TE's unconditional right to receive consideration would be established upon delivery of goods to Beta. At the inception of the contract, TE concludes that Beta will meet 15,000 units threshold for the discount. Beta placed the following orders: (10) Order date Units 14 February 2019 10,000 1 June 2019 8,000 Delivery date (Transfer of control) 28 February 2019 15 July 2019 Payment date 20 March 2019 18 July 2019 Required: In respect of the above contracts, prepare journal entries to be recorded in the books of TE for the years ended 31 December 2018 and 2019.

Answer rating: 100% (QA)

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