XYZ Company sold 1,000 mobile phones during 2020 at a total price of Taka 6,000,000, with...
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XYZ Company sold 1,000 mobile phones during 2020 at a total price of Taka 6,000,000, with an assurance warranty and an extended warranty. The cost of mobile phones sold is Taka 4,000,000. The term of the assurance warranty is two years, with an estimated cost of Taka 30,000. In addition, extended warranties are related to 1,000 mobile phones for 3 years beyond the 2-year period. The fair value of the 1000 mobile set and extended warranty are Taka 58,00,000 and 800,000 respectively. What are the journal entries that XYZ Company should make in 2020 related to the sale and the related warranties according to IFRS 15? XYZ Company sold 1,000 mobile phones during 2020 at a total price of Taka 6,000,000, with an assurance warranty and an extended warranty. The cost of mobile phones sold is Taka 4,000,000. The term of the assurance warranty is two years, with an estimated cost of Taka 30,000. In addition, extended warranties are related to 1,000 mobile phones for 3 years beyond the 2-year period. The fair value of the 1000 mobile set and extended warranty are Taka 58,00,000 and 800,000 respectively. What are the journal entries that XYZ Company should make in 2020 related to the sale and the related warranties according to IFRS 15?
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