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QUESTION 2 Gyampat Enterprises sold goods to customers but retain the title of the goods till the receipt of money. The goods are normally sold on three months credit and title of the goods also passed to the buyers after receipt of money. Gyampat Enterprises also give warranty for three months for un-satisfactory performance. At the balance sheet date goods for which title has not been transferred and eligible for warranty are GHS 1,250,000. The markup on these goods is 25%. Past experience tells that 80% goods have no claim, 10% returned but can be sold at the original value and remaining 10% have no value at all. Calculate the amount of provision Gyampat Enterprises should be created in the financial statements