Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 24 October 2015 , Sammy Sdn Bhd, a retailer of office equipments placed an order for 200 units of computers and 500 units of

image text in transcribedimage text in transcribed

On 24 October 2015 , Sammy Sdn Bhd, a retailer of office equipments placed an order for 200 units of computers and 500 units of printers, from a supplier Equip Bhd. The merchandise was delivered to Sammy Sdn Bhd on 13 November 2015. The list price of computer was RM1,100 per unit, and of printer was RM120 per unit. Because Sammy Sdn Bhd was a regular customer, Equip Bhd gave a trade discount of 5% and the merchandise was invoiced with a credit term of 4/10 net 30 . At reporting date, 31 December 2015 , Sammy Sdn Bhd has unpaid salaries for December 2015 amounting to RM10,000. a) Can this unpaid salaries be a liability? b) If so, can the liability be recognised? c) How is it classified? Why? d) Journal entries to account for the initial recognition and measurement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Principle 5 Powerful Steps To Align Your Life With The Laws Of Success

Authors: Jane Ann Craig

1st Edition

1732729107, 978-1732729100

More Books

Students also viewed these Accounting questions

Question

8. Explain the difference between translation and interpretation.

Answered: 1 week ago

Question

10. Discuss the complexities of language policies.

Answered: 1 week ago

Question

1. Understand how verbal and nonverbal communication differ.

Answered: 1 week ago