Mel Ltd sells its products with a significant financing component included in the selling price.

Under this arrangement, receivables are settled at the end of a two year period.

In $20$x$3$ Mel Ltd did not comply with AASB $15$ Revenue from Contracts with Customers and

recorded all its transaction as sales revenue only. In $20$x$3$ sales revenue was $$1,000,000$ and

the cost of sales was $$800,000.$

For the current year Mel adopted AASB $15$ Revenue from Contracts with Customers and this meant

$10\%$ of the transaction price were treated as deferred interest income. In the current year, the

total transaction price from sales was $$1,000,000$ and cost of goods sold was $$800,000.$

As a result of adopting AASB $15$ Revenue from Contracts with Customers in $20$x$4$ Mel Limited's

Gross Margin Percentage will:

Decrease compared with $203.$

It is not possible to tell from the data provided.

Remain the same compared with $203.$

Increased compared with $203.$