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Topic- Revenue RecoginitonQuestion Discuss the accounting treatment of revenue recognition of each of the...

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Accounting

Topic- Revenue Recoginiton
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Discuss the accounting treatment of revenue recognition of each of the situation
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i. A telephone company (Celco) enters into a contract with its customer on 1 December 2020, under which the customer pays RM4,000 and Celco gives the customer a free mobile phone and 2 years' telephone line service. The fair values of the mobile phone and the 2 years' service are RM2,000 and RM3,000 respectively. Seng Huan. Berhad sells a furniture set to a customer for RM6,000 on 30 November 2020. Upon the request of the customer whose house is under renovation, Seng Huan holds the furniture set until 1 February 2021, when it is delivered to customer's house, which is now renovated. ii. Hitacbee Berhad enters into a contract with a customer to sell a television set with 2 years' assurance warranty for RM5,000 on 1 May 2020. The customer pay another RM2,000 to buy a 3-year service warranty to cover years 3, 4 and 5

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