The following transactions are taken from the business books of Stabilo Bhd. In all cases, the...
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The following transactions are taken from the business books of Stabilo Bhd. In all cases, the financial year end is at 31 March 2017. i. Goods at the selling price of RM25,000.00 were sent out to Syahrul Sdn. Bhd on a 14-day) sale or return basis on 20 March 2017. On 1 March 2017, Stabilo Bhd. received RM900.00 cash from the sale of a television set whereby the customer, Ali, had agreed to pay a 40 percent down 05-450683 payment, and the balance in six monthly instalments beginning 1 April, 2017. pe ii. REQUIRED: Justify whether the above transactions are considered as 'sale' whereby revenue could be recognised in the business books of Stabilo Bhd as at year end. [4 Marks] The following transactions are taken from the business books of Stabilo Bhd. In all cases, the financial year end is at 31 March 2017. i. Goods at the selling price of RM25,000.00 were sent out to Syahrul Sdn. Bhd on a 14-day) sale or return basis on 20 March 2017. On 1 March 2017, Stabilo Bhd. received RM900.00 cash from the sale of a television set whereby the customer, Ali, had agreed to pay a 40 percent down 05-450683 payment, and the balance in six monthly instalments beginning 1 April, 2017. pe ii. REQUIRED: Justify whether the above transactions are considered as 'sale' whereby revenue could be recognised in the business books of Stabilo Bhd as at year end. [4 Marks]
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Revenue Recognition for Stabilo Bhd Transactions Transaction i Sale or Return Revenue Recognition No ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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