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(c) Buffalo Ltd manufactures textiles and purchases raw cotton from overseas. A shipment of cotton was in transit at the end of the reporting period

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(c) Buffalo Ltd manufactures textiles and purchases raw cotton from overseas. A shipment of cotton was in transit at the end of the reporting period and, given that the price per bale is determined by quality, an estimated cost of $125 000 was recognised. The cotton duly arrived on 18 July 2021 and after examination it was determined that the cost will be $163 000

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