QUESTION Showay Bhd. is a health solution company with four main product lines; home care, water care, air care and body care. Aside from the technological advancement incorporated into the product, the company offers customers with various sales packages to meet the demand of various categories of customers. One of the popular product is ELLOVE, the water purifier. The machine uses electronic one-touch dispenser with reverse osmosis filtration system. A regular maintenance of once in two months is required for the machine to operate efficiently. The followings are sales packages related to the product: Package 1: A package to purchase the water purifier by cash at a discounted price. The normal selling price of the machine is RM4,500 per unit. Customers that secure a contract to purchase the water purifier during May and June 2016 will only have to pay RM4,000 for the machine. The ownership of the machine will be transferred to the customer upon the delivery and installation of the machine, which is made on the same day the package is bought. This package, however, does not include a maintenance service. Package 2: A bundled-package of water purifier and a contract for 2-year maintenance services worth RM100 per maintenance. In this bundled-package agreement, customers will be provided with 12-times regular maintenance (once in two months, at the end of the month). The customer is required to pay upfront the full package of RM4,800. The ownership of the machine will be transferred to the customer upon the delivery and installation of the machine, which is made on the same day the package is bought. Required: a) Discuss the accounting treatment for each of the above packages by providing journal entries to illustrate your answer. More specifically, determine the timing and amount of revenue to be recognized by Showay Bhd. if, on 1 January 2016, a customer purchases the water purifier package under: i. Package 1. ii. Package 2. b) Discuss the accounting treatment for each of the above packages by providing journal entries to illustrate your answer. More specifically, determine the timing and amount of revenue to be recognized by Showay Bhd. if, on 1 June 2016, a customer purchases the water purifier package under: i. Package 1. ii. Package 2.