Q and A for the topic: General

Workshop 1 Trade accounts receivable and current inventories – IAS 2 The company ABC SA presents the following information as of April 30, 2021. Available $10,000,000 Inventories 5,000,000 Office equipment 20,000,000 Land and buildings 80,000,000 Capital 115,000,000 Inventory is represented by 2,000 units of product X at $2,500 each. Transactions during 2012. 1. On May 15, 2021, 3,000 units of product X for sale, with a value of $2,000 each, were purchased on credit. Additionally, transportation and insurance were paid to acquire the merchandise worth $440,000 and 36,000. 2. On May 30, the debt to the supplier acquired on May 15 is canceled, and the supplier grants a discount of $10 per unit. 3. On June 5, 2021, 2,000 units of product X were sold on credit for $4,000 each, invoice 5, customer AB. 4. On August 20, 2021, 500 units of product X were sold on credit for $3,000 each, invoice 7, customer XX. 5. 1,000 units of product X are purchased on credit, with a value of $1,800, each 6. On December 10, 800 units of product X were sold on credit for $3,800 each, invoice 10, customer WZ. 7. It was determined, with the market study, that, due to the entry of a similar product at a very low cost, the unit sales prices of product X are only $1,900 per unit. The accounting policy for calculating the impairment of accounts receivable is: Between 30 days and 90 days due is 10% Between 91 days and 180 days due is 20% Between 181 days and 360 days, 50% due More than 361 days due 100% It is requested Perform accounting recognitions. For inventories use weighted average and the FIFO. Present the Financial Statement and Income Statement as of December 31, 2021.

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