Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Smartmix Ltd sells smart food processor. It offers a 2-year interest free period in a promotion activity recently. Customer J purchases the smart food processor
Smartmix Ltd sells smart food processor. It offers a 2-year interest free period in a promotion activity recently. Customer J purchases the smart food processor on 1 June 2023 and the good is delivered to Customer J on 30 June 2023. Customer J qualifies for the interest-free period and will pay $2 500 on 30 June 2024 and 2025 (i.e. in 1 years and 2 years time). The current cash sales price of the smart food processor is $5 000. An appropriate discount rate for imputing interest to the transaction is 5% per annum. Required Prepare the journal entries to record this transaction in accordance with AASB 15/IFRS 15 for the year ended 30 June 2024 and 2025. Show
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started