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Question 2 VisualPro Pte Ltd launched a new line of video production equipment and sold one to a customer on 1 July 20x1 for $37,000.

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Question 2 VisualPro Pte Ltd launched a new line of video production equipment and sold one to a customer on 1 July 20x1 for $37,000. The customer paid and collected the equipment on the day itself. The equipment came with a one-year warranty against manufacturing defects (which was not sold separately). As the company wanted to promote the product, the company gave some additional freebies: Extended one-year warranty against manufacturing defects. One-time free cleaning and servicing of equipment. $500 cash voucher (validity of 12 months) for purchase of accessories. VisualPro also sells the above separately to customers who do not take up the promotional package. The pricings are given below: Product/Service Price (S) Extended 1-year warranty against manufacturing defects 1,000 One-time cleaning and servicing of equipment 500 $500 cash voucher 450 The customer scheduled the cleaning and servicing on 1 June 20x2, The voucher was utilized on 1 September 20X1. Required: Apply FRS 115 Revenue from Contracts with Customers to account for the treatment of this transaction. Provide journal entries for the sales and the recognition of the revenues. Question 2 VisualPro Pte Ltd launched a new line of video production equipment and sold one to a customer on 1 July 20x1 for $37,000. The customer paid and collected the equipment on the day itself. The equipment came with a one-year warranty against manufacturing defects (which was not sold separately). As the company wanted to promote the product, the company gave some additional freebies: Extended one-year warranty against manufacturing defects. One-time free cleaning and servicing of equipment. $500 cash voucher (validity of 12 months) for purchase of accessories. VisualPro also sells the above separately to customers who do not take up the promotional package. The pricings are given below: Product/Service Price (S) Extended 1-year warranty against manufacturing defects 1,000 One-time cleaning and servicing of equipment 500 $500 cash voucher 450 The customer scheduled the cleaning and servicing on 1 June 20x2, The voucher was utilized on 1 September 20X1. Required: Apply FRS 115 Revenue from Contracts with Customers to account for the treatment of this transaction. Provide journal entries for the sales and the recognition of the revenues

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