JANUARY 2017, QUESTION 3 Handel Limited, a company that prepares its financial statements to 31 December each year, is involved in the manufacture and distribution of a variety of natural healthcare products. A number of issues have still to be resolved before the financial statements for the year ended 31 December 2016 can be finalised. BAL Issue 1: Handel Limited acquired 200,000 of finished goods inventories lon consignment from Chopin Limited during December 2016. While the goods remain in Handel Limited's inventory at 31 December 2016, they are not recorded in the company's financial statements for the year ended 31 December 2016. The contract entered into with Chopin Limited states that Handel Limited has the right to sell the inventories direct to the public or to transfer them tatat cost to another retailer. Chopin Limited cannot force Handel Limited to return the goods or transfer them to another retailer. DD D 4 Marks Dr Cash Requirement Explain how this transaction should be recorded in the financial statements of Handel Limited for the year ended 31 December 2016. Revenue. De: Revenue the acquired 200,000 goes to Revenue. Gri Issue 2: Ant Cr boven Inventories Limited cocacionally purchases garlic, keeping it in controlled conditions for periods