Entity A is a Hong Kong-based limited company that participates in the building material industry for many years. It sells high-quality raw materials to different local and foreign manufacturers. Entity B is one of its loyal customers for more than 30 years. On 1 January 2021, Entity A received an advanced payment of $2,564,000 from Entity B through the Hong Kong City Bank for selling Material X. According to the contract terms, Entity A would only deliver Material X to Entity B on 31 December 2021. On 31 December 2021, the cash sale price of Material X was $2,705,020. The cost of sales of Material X was $1,235,000. On 1 January 2022, Entity A entered into another contract with Entity B. This contract stated that Entity A was required to transfer Material Y and Material Z to Entity B in exchange for $345,600. According to the contract terms, Entity A could invoice this full amount on 31 January 2022. Material Y was to be delivered on 28 February 2022 and Material Z was to be delivered on 31 March 2022. Both promises to transfer Material Y and Material Z were identified as separate performance obligations. The amount of $210,500 was allocated to Material Y and $135,100 to Material Z respectively. The cost of sales of Material Y and Material Z was 65% and 55% of their sale prices respectively. Entity A received a crossed cheque from Entity B of Material Y and Material Z on 30 April 2022. The market interest rates for the years 2021 and 2022 were 5.50% and 6.50% respectively. Entity A adopts a perpetual inventory system for keeping its inventory accounting records. Entity A recognises revenue when control of each material transfers to Entity B. Fill in the journal Entry,

REQUIRED:

Provide journal entries for Entity A from 1 January 2021 to 30 April 2022 under relevant accounting standards.

ACCOUNTS FOR INPUT:

| Bank | Payable | Receivable | Interest expense | Interest revenue | Inventory | PPE |

| Asset for product to be returned | Commission expense | Commission revenue | Revenue |

| Cost of sales | Contract asset | Contract liability | Retained earnings | No entry |

ANSWER:

Please use the accounts for input. Thank you.

Journal Entries:

Date	Account Name	Debit ($)	Credit ($)	Hints For Sequence
1-Jan-21				-
				-
31-Dec-21				-
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31-Dec-21				-
				-
				-
				-
1-Jan-22				-
				-
31-Jan-22				-
				-
28-Feb-22				-
				-
				-
				-
31-Mar-22				-
				-
				-
				-
30-Apr-22				-
				-