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FAC2601 ASSIGNMENT 5 Semester 2 2024( Quality Answers ) 100% distinction pass guarantee
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Q1Use the following information to answer questions 1 and 2:
Mould Ltd sold goods to a customer for a total consideration of R181 500, payable 24
months after delivery. The customer obtained control of the products on delivery. The
cash selling price of the goods amounted to R150 000 and represents the amount that
the customer would pay upon delivery instead of over 24 months.
Mould Ltd will recognise:
REQUIRED:
Question 1
Which one of the following statements is correct based on the information provided
above?
1.Revenue is recognized at an amount of R181 500 on delivery
2.Revenue is recognized at an amount of R181 500 after 24 months
3.Revenue is recognized at an amount of R150 000 after 24 months
4. Revenue is recognized at an amount of R150 000 on delivery
Q2
se the following information to answer questions 2:
Mould Ltd sold goods to a customer for a total consideration of R181 500, payable 24
months after delivery. The customer obtained control of the products on delivery. The
cash selling price of the goods amounted to R150 000 and represents the amount that
the customer would pay upon delivery instead of over 24 months.
Mould Ltd will recognise:
QUESTION 2:
Trades and other receivables will be reflected at an amount of?
1.R150 000 after 24 months.
2.R31 500 at the inception of the contract;
3.R150 000 at the inception of the contract;
4. R181 500 at the inception of the contract;
, Interest is recognised in other income over the period of the contract
Q3
Use the following information to answer question 3 and 4:
Trackers Ltd has a revenue policy intact that allow their customers to receive a 5%
discount on goods sold, when those customers purchase more than 1 250 cool bags
per year.
On1 June 2023 a regular customer already purchased 750 cool bags at R150 per cool
bag. Trackers Ltd expects that this customer will purchase more than 1 250 cool bags
during the year. The financial year end of Trackers Ltd is 28 February 2024.
REQUIRED:
QUESTION 3:
Which one of the following is the correct amount at which the revenue must be
recognised on 1 June 2023?
1.
R112 500;
2.
R5 625;
3.
R106 875;
4.
R178 125;
Sales (750 x 150) 112 500
Less: discount (750 x 150 x 5%0 (5 625)
Revenue 106 875
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