Question
Question 6 (10 points) v Saved Tassie Plastic Ltd sells plastic bags. Wholesale customers that purchase more than 10 000 plastic bags are entitled to
Question 6 (10 points) v Saved Tassie Plastic Ltd sells plastic bags. Wholesale customers that purchase more than 10 000 plastic bags are entitled to a discount of 5% on their purchases. On 1 April 2020, a customer ordered 30,000 plastic bags from Tassie Plastic Ltd. The normal selling price per thousand bags is $350. Tassie Plastic Ltd delivered the 20,000 bags on 15 April 2020. Customer paid for the goods on 15 May 2020. Reporting period ends on 30th June. Required 1- When should Tassie Plastic Ltd recognise the revenue related to the above transaction? Provide reference to the five-step model as prescribed by the AASB15. 2- Prepare the journal entries to record this transaction by Tassie Plastic Ltd. for the year ended 30 June 2020.
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