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can u solve all (a) On 1 November 2020, Logitech Sdn Bhd (Logitech) sells a tablet to Kenny for RM6,000. As part of this arrangement,
can u solve all
(a) On 1 November 2020, Logitech Sdn Bhd (Logitech) sells a tablet to Kenny for RM6,000. As part of this arrangement, Logitech gives Kenny a voucher. The voucher entitles Kenny to a 25% discount on any purchases up to RM2,000 in any Logitech's store during the next 60 days. The voucher can only be redeemed once. Logitech intends to offer a 10% discount on all sales to other customers during the next 60 days as its seasonal promotion. The 10% discount cannot be used in addition to the 25% discount voucher. Logitech estimates that there is an 80% likelihood that Kenny will redeem the voucher and will purchase additional products at a normal price of RM1,500. On 1 December 2020, Kenny purchased 2 pen tablets at a normal price of RM600 from a Logitech's store at Sunway City. Kenny redeemed the 25% discount voucher on 1 December 2020. Required: Discuss the correct accounting treatment for the recognition of revenue under the IFRS 15/ MFRS 15 Revenue from Contracts with Customer. (Note: Show all relevant journal entries in your discussion) (20 marks) (b) KMC Sdn. Bhd. (KMC) provides a warranty for its product sold to the customers. The warranty provides assurance that the product complies with the agreed-upon specification and will operate as promised for one year from the date of purchase. Based on past experience, it is probable that there will be some claims under the warranties. KMC also has a policy of refunding purchases by dissatisfied customers. KMC did not display the refund policy on the sales invoice or receipt. However, KMC's policy of making refunds is generally known. KMC has a machine that needs to have its engine replace every three years for a technical reason. KMC uses this machine to produce goods for two years, and KMC is planning to replace the engine in the next financial year. Required: Discuss the appropriate accounting treatment for the transactions that occur in KMC in accordance with IAS 37/ MERS 137 Provision, Contingent Liabilities and Contingent Assets. (15 marks) [Total: 35 marks]Step by Step Solution
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