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Please provide some recommendation on the following issues with appropriate accounting treatments as per the Australian Accounting Standard. 1 ) As at the beginning of
Please provide some recommendation on the following issues with appropriate accounting
treatments as per the Australian Accounting Standard.
As at the beginning of the current financial year High Ltd has two provision accounts:
a Provision for lawsuit claims $m and
b Provision for warranty $m
During the year ended June the lawsuit claims were settled at $m and warranty
costs of $m were paid. We would like to increase the warranty provision to $m at year
end in tandem with the increase in products sold during the year.
Please provide journal entries if any that we should make for June to prepare our
annual report. Please show all workings settlement of the lawsuit claims and increase of
warranty provision
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