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
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- On 1 October 2020, ABC Limited sold three machines to a customer for a total amount of R 1 900 000. The three machines were delivered to the premises of the customer on the same day. Included in the sales contract are 1-year warranties for all three of the machines. A warranty for each of these machines may cost R 20 000 to obtain. The customer received a trade discount of 10 % for both tractors. ABC Limited awards a settlement discount of 6% to any customer who settles their account in full within 30 days of making a purchase. This particular customer often buys machinery from ABC Limited and based on past dealings with the customer ABC Limited expects that the customer will settle their account within 30 days. The customer settled their account in full on 3 November 2020. How many performance obligations are contained in the contract? 01 2 3 06Yellow Company, a distributor of machinery, bought a machine from the manufacturer in November 2020 for P500,000. On December 30, 2020, the entity sold this machine for P750,000 under the following terms: 2% discount if paid within 30 days, 1% discount if paid after 30 days, or payabl e in full within ninetydays if not paid within the discount periods. However, the customer had the right to return this machine to Yellow Company if it was unable to resell the machine before the expiration of the ninety-day payment period, in which case the customer’s obligation to Yellow Company would be canceled. In the net sales for the year ended december 31,2020, what amount should be included for the sale of the machine? a. 750,000 b. 735,000 c. 742,500 d. 0Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront cash payment of P250,000. Product A will be delivered at the end of the year, and Product B will be delivered the following year. Zoro Company sells Product A for P80,000 and Product B for P240,000. 1. How many performance obligations are there in the contract? 2.what is the transaction price? 3.how much is revenue to be recognized in 2020? 4. how much is revenue to be recognized in 2021?
- On July 10th, 2020X1, a purchase contract for pallet and heavy-duty shelving worth EUR 12,000 (plus VAT) is concluded with the supplier Superregal. Superregal grants TK a discount of 3% on the above value. On 08/01/20X1, TK makes a down payment in cash of EUR 1,547 including VAT. The shelves will be delivered and assembled on 10/15/20X1, with assembly costs of EUR 900 plus VAT incurred, which will be paid by bank on 10/17/20X1. The remaining purchase price will not be transferred until the new year. The shelves have a useful life of 15 years and are depreciated using the declining balance method at a rate of 12%. Which of the following statements regarding business transactions in 20X1 is/are correct? O The payouts total EUR 2,252. O On 10/15/20X1 at least one active stock account is posted as a debit and at least two other active stock accounts are posted as a credit. O The shelves are activated with 12,540 EUR. O The payoff and the effort are equal.Commando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per product). The goods will be delivered to M&H over the following six months. The contract is updated after 60 merchandises are supplied, and Common offers to provide 80 more things for an extra P21,600 (P270 per station). Commonlo provided an extra 90 goods at the end of the year. All sales are made in cash upon delivery. Consider that the added term is a potential change to the original contract. That however much income will be recognised under the contract in 2021?In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300 per product). The merchandise is to be delivered to M&H over the next 6 months. After 60 merchandises were delivered, the contract is modified and Commonlo promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Commonlo delivered an additional 90 products. All sales are cash on delivery. Assume that the additional term is a prospective modification to the original contract How much revenue will be recognized on the contract for the year 2021? Next « Previous
- Huawey Company, a telco operator, entered into a contract with Badjyang on Feb. 1. 2019. In line with the contract, Badjyang subscribes for a monthly plan for 12 months and in return receives a free handset model 2019. Badjyang monthly fee of P1,800 starting Feb. 28, 2019 The standalone selling price of Huawey handset model 2019 is P6,000 and the monthly plans for P1,500 a month will рay a without the handset. 10. The amount of receivable recorded on Feb. 28, 2019 P1,500 d. P1,800 а. PO с. b. P1,350 11. The total revenue for the period ended Dec. 31, 2019 amounted to: P20,250 d. P27,600 a. PO С. b. Р24,000Careful Company sells goods that cost P600,000 to a customer for P800,000 on December 20, 2021. The sales price includes an installation fee, which is valued at P80,000. The fair value of the goods is P740,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021 and 2022?On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 6.100 units of Comfort Office Keyboard to one of its clients, Bionics Inc., at a fixed price of $103,700, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $61,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2021 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to…
- On May 2, 2019 PIONEER, PHILS INC. Ships ten (10) Compact Disc Stereo to KALIDAD Appliance Center. Each Stereo system costs P10,000 and is to be sold at an advertised price of P14,000. PIONEER Paid freight in the amount of P1,200 while KALIDAD incurred a cartage of P500, which is reimbursable. The consignee is entitled to a commission of 20% of the authorized selling price. The Consignee sold all the units and remitted the balance due to the consignor along with the account sales. Required: 1. Prepare the journal entries in the books of hte consignee 2. Prepare the account salesOmicron plc prepares financial statements to 31 December each year. On 1 January 2021, Omicron plc entered into a contract with a customer to sell Product X for £10 per unit. If the customer purchases more than 10,000 units of Product X in a calendar year, the contract specifies that the price per unit is retrospectively reduced to £9 per unit. For the quarter ended 31 March 2021, Omicron plc sells 1,500 units of Product X to the customer and based on this volume of purchases, Omicron plc consider that it is highly probable that the customer’s purchases will not exceed the 10,000-unit threshold required for the volume discount in the calendar year. In May 2021, Omicron plc’s customer acquires another company and, in the quarter, ended 30 June 2021, Omicron plc sells an additional 7,000 units of Product X to the customer. In the light of the new fact, Omicron plc estimates that the customer’s purchases will exceed the 10,000- unit threshold for the calendar year. Required Explain the…LG Inc. agrees to transfer television sets to SM Home Appliances on consignment. The consignee is to sell sets at P17,000 and is to receive a 20% commission on sales price. The consignor agrees to reimburse the consignees for all expenses related to the consignment. The agreement also calls for an advance payment of P5,000 per set by the consignee, the P5,000 advance is to be deducted as settlement is made for each set sold. The consignee is to provide account sales quarterly and is to make a cash remittance for the amount owed at that time. Transactions for the period follows: The consignor shipped 10 sets to the consignee. The consignor maintains a cost accounting system and perpetual records. The cost is P9,000 each. The consignor paid freight charges of P16,500. The consignee made advance payments on the sets received. The consignee sold 6 sets for cash, expenses of delivery and installation chargeable were P2,750. The consignee returned all the remaining sets and paid…