ART 2: 2.1 Star Ltd manufactures and sells a motorbike. It is sold with a two-year manufacturers warranty. It also offers customers the option to purchase an extended warranty on its product. Under the extended warranty, Star will repair products that become defective within three years from the date the manufacturers warranty ends. If at the time of purchasing a scooter, a customer does not purchase an extended warranty, the customer can purchase an extended warranty separately at a later stage. The combined sales price for a motorbike plus an extended warranty is 19,300. Separately, a scooter can be purchased for 18,000 and the extended warranty can be purchased for 2,000. For the year ending 31 Dec 2020, Start Ltd has sold 5,300 units of motorbikes. Required: Explain how this transaction should be accounted for in financial statements for the year ending 31 Dec 2020. 2.2 Supreme Solutions Ltd (SS) is a software company and in on 1st of July 2020 it sold its software product to Delta Ltd for a total of 400,000 which includes the provision of support service for the next 4 years. Without a support service, software is sold to other customers at 290,000. Support service can be provided separately at 40,000 per year. Required: Explain how this transaction should be accounted for in financial statements for year ending 31 Dec 2020. Note: Ignore any discounting. 2.3 A furniture retailer sells goods to a customer for 60,000 on 1 January 2020. Delivery will take place immediately and the company has given the customer an interest-free credit period of 36 months. The discount rate is 7%. Required: Explain how this transaction should be accounted for in financial statements for year ending 31 Dec 2020.