D'Mask Bhd sells 3 ply surgical face masks. On 1 January 2020, D'Maskentered a contract with Topeng Bhd under which Topeng Bhd was topurchase one box of the face masks at RM20 from D'Mask.The contract states that if Topeng Bhd purchases more than 5,000boxes of masks in a year, the price per box is reduced retrospectively toRM18 per box (i.e. all purchases will be RM18 per box). D'Mask Bhd'syear end is 31 December.As at 31 March 2020, Topeng Bhd bought 600 boxes from D'Mask.D'Mask therefore estimated that Topeng Bhd's purchases would notexceed 5,000 boxes in the year to 31 December 2020, and Topeng Bhdwould therefore not be entitled to the volume discount.During the quarter ended 30 June 2020, due to high demand, TopengBhd purchased an additional 3,000 boxes of masks from D'Mask.D'Mask then estimated that Topeng Bhd's purchases would exceed thethreshold for the volume discount in the year to 31 December 2020.Required:Compute the revenue D'Mask Bhd would recognise in the quarterended:(a)31 March 2020.(b)30 June 2020

The question deals with IFRS 15 "Revenue from contracts with customers". As per IFRS 15, revenue is…

Bhd purchased an additional 3,000 boxes of masks from D'Mask. D'Mask then estimated that Topeng Bhd's purchases would exceed the threshold for the volume discount in the year to 31 December 2020. Required: Compute the revenue D'Mask Bhd would recognise in the quarter ended: (a) 31 March 2020. (b) 30 June 2020

Bhd purchased an additional 3,000 boxes of masks from D'Mask. D'Mask then estimated that Topeng Bhd's purchases would exceed the threshold for the volume discount in the year to 31 December 2020. Required: Compute the revenue D'Mask Bhd would recognise in the quarter ended: (a) 31 March 2020. (b) 30 June 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dimagiba Company began operation at the beginning of 2021. During the year, it had cash sales of 6,875,000 and sales on installment basis of 16,500,000. Dimagiba adds a markup on cost of 25% on cash sales and 50% on installment sales. Installments receivable at the end of 2021 is 6,600,000. The resulting realized gross profit for 2021 is:
The Runner Antique Mall expects to make purchases in the first quarter of 2021 as follows: January $85,500 February 108,000 March 76,500 Purchases in December 2020 are expected to be $82,600. The company expects that 50 percent of a month's purchases will be paid in the month of purchase and 50 percent will be paid in the following month. Estimate cash disbursements related to purchases for each month of the first quarter of 2021.
ABC Company sold 10 units of goods with a unit list price of P2,000 on January 1, 2020. Given that the trade discount is 5% and the cash discount is 10%, and that the cash discount period is 10 days and the credit period is 30 days, if the customer settles the debt on January 11, 2020, what is the actual payments he needs to pay
The following items were selected from among the transactions completed by PT Day6 during 2019, which hold trading latest product, Smartphone XY & Tablet xỶ. 1. On June 10, Smartphone XY total sales were Rp600,000,000, which includes a 10% sales tax. 2. On July 7, Tablet XY total sales were Rp1,400,000, excluding 10% sales tax. 3. On August 31, PT Day6 sold Rp400,000,000 of Smartphone QZ during August under a one-year warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. 4. On December 15, PT Day6 performed service to a customer that was paid Rp160,000,000 last month. Instructions: Prepare PT Day6's journal entries to record all the transactions during 2019
On December 28, 2021, Tristar Communications sold 13 units of its new satellite uplink system to various customers for $20,000 each. The terms of each sale were 1/10, n/30. Tristar uses the gross method to account for sales discounts. In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2022? By how much? In income before tax will be by
Castro Industries purchased $21,600 of merchandise on February 1, 2020, subject to a trade discount of 5% and with credit terms of 2/15, n/60. It returned $5,000 (gross price before trade or cash discount) on February 4. Castro paid one-half of the outstanding obligation on February 13. The remaining amount was paid 60 days after the date of purchase. Prepare the journal entries Castro would make for the purchase, the return, and the two payments using (1) the gross method and (2) the net method. Castro uses a periodic inventory system.
The following information relates to Arlon Manufacturers which will commence business on 01 January 2024 with R750 000 cash: 1. 2. New machinery and equipment will be purchased on 02 January 2024 for R300 000. A deposit of 20% will be paid immediately. The balance of the debt as well as finance charges of R18 000 will be paid in 12 equal instalments commencing February 2024. Production will commence on 05 January 2024 and 30% of the sales for February's will be manufactured in January. Each month thereafter the production will consist of 70% of the current month's sales and 30% of the following month's sales. 3. Estimated sales at R72 per unit are as follows: 4. January February March April Units 0 8 500 11 000 10 500 Cash sales are expected to comprise 60% of the total sales. A cash discount of 10% will be granted to these customers. The balance of the sales will be on credit. Thirty percent (30%) of the amount owing is expected to be received in the month of the sale and the balance…
In 2020, Zeta Construction Corp. began work on a contract for $3,700,000. Other details follow: 2020 Costs incurred during the year $1,800,000 Estimated costs to complete as of December 31 1,200,000 Billings during the year1,650,000 Collections during the year 975,000 Zeta uses the percentage-of-completion method. For calendar 2020, Zeta should report gross profit of?
ABC SAOG has entered a contract to supply a machinery on 1st December 2019 for OMR 1000,000 along with maintenance service for a period of 2 years with no additional charge. The payment terms were as follows: OMR 1000,000 if paid by 31st December 2019; OMR 1020,000 if paid by 31st January 2020; OMR 1040,000 if paid by 29th February 2020. It is highly probable that the customer will make payment in the month of January 2020. The stand-alone selling price for machinery was OMR 900,000 and the consideration for two years maintenance service is expected to be RO 300,000. What is the amount of obligation for maintenance service for two years? O a. OMR 250,000. Ob.OMR 100,000. Oc. OMR 750,000. O d. OMR 255,000.