ACC2014 FINANCIAL ACCOUNTING QUESTION

On 1 November 2020, Asdion Furniture Bhd sells 20,000 tables to Akea Bhd at RM100 per unit. Cost per unit is RM60. Akea Bhd pays Asdion Furniture Bhd when it obtains control of the tables. The sales contract allows Akea Bhd to return any undamaged tables within 30 days and receive a full refund in cash. Asdion Furniture Bhd uses the expected value method to estimate the variable consideration associated with the return of the tables sold. Asdion Furniture Bhds past experience with sales of the tables was a 2% return by Akea Bhd. Asdion Furniture Bhd expects Akea Bhd to return 400 tables sold.

On 18 December 2020, Akea Bhd returned 400 tables to Asdion Furniture Bhd and received a full refund of RM40,000 from Asdion Furniture Bhd.

Required:

Discuss how Asdion Furniture Bhd should account for the contract with Akea Bhd on 1 November 2020 and 18 December 2020 under the IFRS 15/ MFRS 15 Revenue from Contracts with Customers. (Note: Show all relevant journal entries in your discussion)