Bill's Nice Apartments Pty Ltdhas agreed to buy $480,000 worth of building materials fromJaspreet's Building Services Pty Ltd.The agreement between the two companies is that Bill's Nice Apartments Pty Ltdwill pay for these materials in equal instalments, with the first instalment to be paid on the delivery date, ie 1 March 2017. The building materials and the outstanding amounts will be paid every 6 months for the next 2 years. There is a negotiated a discount rate of 3.0% per annum for interest on this transaction.

Required

1. Prepare journal entries forJaspreet's Building Services Pty Ltdto account for the revenue from thistransaction.15 marks
2. With specific reference to the relevant paragraph(s) of the appropriate Accounting Standard, in your own words, compare and contrast the revenue recognition criteria for the sale of goods with the criteria for the rendering ofservices.10 marks