Question
A.Previlo Bhd is a renowned furniture manufacturer in Malaysia. It has a year end of 30 September 2019. The directors require advice about the following
A.Previlo Bhd is a renowned furniture manufacturer in Malaysia. It has a year end of 30 September 2019. The directors require advice about the following situations.
(i)A customer placed an order for 'Furniture X10' that amounted to RM20,000 on 10 September 2019. The product was delivered to the customer on 2 October 2019 and the transaction was recognised in the current accounting period.
Dr Accounts receivable
20,000
Cr Sales revenue
20,000
Explain if the above scenarios violate the qualitative characteristics, assumptions or principles under the Conceptual Framework. Your answer should be supported with (any) correct journal entry as at 30 September 2019.
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
