QUESTION 10:

Afford Ltd sold goods to the value of R100 000 on credit to a customer on 7 April 2022. In terms of Afford Ltds credit policy, customers are promised a 5% discount, provided they pay within 10 days after the date of sale. Based on historical information, the entity estimates that 80% of its customers settle their accounts within 10 days after the date of sale.

The customer obtained control of the asset on 10 April 2022, and paid his account on 20 April 2022.

REQUIRED:

With regards to the above transaction, how much revenue should Afford Ltd recognise according to IFRS15 Revenue from Contracts with Customers?

1.

R76 000

2.

R95 000

3.

R100 000

4.

R105 000