Prepare journal entries that McTavish Ltd needs to record to recognise revenues associated with the above surfing lessons on 15 July 2021 and on 15 July 2022 in accordance with AASB 15 Revenue from Contracts with Customers.
Prepare journal entries that McTavish Ltd needs to record to recognise revenues associated with the above surfing lessons on 15 July 2021 and on 15 July 2022 in accordance with AASB 15 Revenue from Contracts with Customers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 1 July 2021, McTavish Ltd, and organisation involved in the surfing industry, provided two weeks of surfing lessons to a group of middle-aged executives employed by Big Town Ltd. The lessons concluded on 15 July 2021. The contract required Big Town Ltd to make one payment of $20,000 to McTavish on 15 July 2021 and another payment of $20,000 on 15 July 2022. McTavish typically provides credit to such customers at an annual interest rate of 8%.
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