Question 1 Lola is considering switching to IFRS and wondering what effect the switch would have on her business. She has just agreed to sell 750 handbags and 2,500 pairs of gloves to a retailer for $40,000. Normally the handbags sell for $40 and the gloves for $5/pair. Lola will provide the gloves on February 15 and will provide the handbags on March 1. Required: Using the IFRS revenue recognition criteria, write a (very) brief report to Lola detailing how IFRS requires that she record the contract. Include all necessary journal entries and calculations for the life of the contract. The report has been started for you: To: Lola Re: Revenue recognition using IFRS for your large contract