ABC LTD sold 3000 bread loafs to XYZ Bakers in the year 2011 costing R1 each. XYZ Bakers has the option to return unsold breads to ABC LTD within 7 days of the sale. In the first week of 2012, XYZ Bakers returned 200 of unsold bread loafs to ABC LTD. How much sale should ABC LTD recognize in the income statement for the year 2011? Select one: O a. R2 800 O b. No sales should be recognised in the income statement for the year 2011. O c. R3 000 O d. R3 000 must be recognized at first then R2 800 after the return of the unsold breads
ABC LTD sold 3000 bread loafs to XYZ Bakers in the year 2011 costing R1 each. XYZ Bakers has the option to return unsold breads to ABC LTD within 7 days of the sale. In the first week of 2012, XYZ Bakers returned 200 of unsold bread loafs to ABC LTD. How much sale should ABC LTD recognize in the income statement for the year 2011? Select one: O a. R2 800 O b. No sales should be recognised in the income statement for the year 2011. O c. R3 000 O d. R3 000 must be recognized at first then R2 800 after the return of the unsold breads
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC LTD sold 3000 bread loafs to XYZ Bakers in the year 2011 costing R1 each. XYZ Bakers has the option to return unsold breads to ABC LTD within 7 days of the sale. In the first week of 2012, XYZ Bakers returned 200 of unsold bread loafs to ABC LTD. How much sale should ABC LTD recognize in the income statement for the year 2011?
Transcribed Image Text:ABC LTD sold 3000 bread loafs to XYZ Bakers in the year 2011 costing R1 each. XYZ Bakers has the option to return
unsold breads to ABC LTD within 7 days of the sale. In the first week of 2012, XYZ Bakers returned 200 of unsold bread
loafs to ABC LTD. How much sale should ABC LTD recognize in the income statement for the year 2011?
Select one:
O a. R2 800
O b. No sales should be recognised in the income statement for the year 2011.
O c. R3 000
O d. R3 000 must be recognized at first then R2 800 after the return of the unsold breads
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