Topic- Revenue Recognition

i. QUESTION 10 The followings are four independent situations: i. Bio Plastic Company sells plastic containers. On 1 March 2018, Purnama Sda Bhd place an order of 100 boxes of plastic containers from Bio Plastic Company. Each box has 2,000 plastic containers. The normal selling price per box is RM500. Bio Plastic Company delivered the 100 boxes on 20 March, 2018. Duchama Sdo. Bbd paid for the goods on 31 March, 2018. In addition, customers that purchase more than 10,000 plastic containers per month are entitled to a discount of 8% on their purchases. . Smart Tech Sdn Bhd sells the products of various manufacturers through online. It receives the order and then passes the order directly to the relevant manufacturer, who ships the product directly to the customer. The manufacturer is responsible for all product returns, defects, and disputed credit card charges. Smart Tech's fee is 20% of the sales price and remits the remaining 80% to the manufacturer. On 15 July 2018, Smart Tech Sdn Bhd received the order and cash for RM100,000. On 18 July 2018, the product is delivered to customer. ii. Ceria Radio Station receipt of RM50,000 from Sihat Enterprise on 1 June 2018 to play an advertisement about its health products 2 times per day for ten months. The advertisement started to be on air from 1 July 2018. The reporting period of Ceria Radio Station is 31 December. iv. During the year 2018, Perkasa Construction started constructing a building for its customer, Gelama Enterprise. The contract price was RM10 million and Perkasa Construction had estimated the cost to be RM7 million. At the end of 2018, it had incurred a cost of RM2.8 million on the work done. Gelama Enterprise also had paid RM3 million at the end of 2018. Required: a) Discuss the accounting treatment of revenue recognition for each of the situation. b) Prepare the related journal entries for each of the situation