Question
Robinson Ltd is entering into a contract to sell boat products to Harris Ltd for $50 000. The agreement allows Harris Ltd to pay for
Robinson Ltd is entering into a contract to sell boat products to Harris Ltd for $50 000. The agreement allows Harris Ltd to pay for these goods by equal instalments, the first instalment being required on delivery and the remainder to be paid every 6 months for the next 2 years. The boat products are delivered to Harris Ltd on 1 January 2023. Robinson Ltd determine that an appropriate discount rate for interest on this transaction is 5% per annum. The financial year-end is December each year. REQUIRED: Journalise the accounting treatment for the above transaction for the 2023, and 2024 financial years.
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