QUESTION 2Gyampat Enterprises sold goods to customers butretain the title of the goods till the receipt of money.The goods are normally sold on three months creditand title of the goods also passed to the buyers afterreceipt of money. Gyampat Enterprises also givemonths for un-satisfactorywarranty forperformance. At the balance sheet date goods forwhich title has not been transferred and eligible forwarranty are GHS 1,250,000. The markup on thesegoods is 25%. Past experience tells that 80% goodshave no claim, 10% returned but can be sold at theoriginal value and remaining 10% have no value at all.threeCalculate the amount of provision Gyampat Enterprisesshould be created in the financial statements?

Name: QUESTION 2Gyampat Enterprises sold goods to customers butretain the t
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Description: QUESTION 2Gyampat Enterprises sold goods to customers butretain the title of the goods till the receipt of money.The goods are normally sold on three months creditand title of the goods also passed to the buyers afterreceipt of money. Gyampat Enterp

1 PROVISION TO BE CREATED IN FINANCIAL STATEMENTS OF GYMPAT ENTERPRISES

Answered: of the goods til normally sold goods…

Business

Accounting

of the goods til normally sold goods also pas ney, Gyampat

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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