Make an analysis of PT ABC sales contract

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Reference no: EM133020940

Question - The entity sells 5 units of products in the form of air purifiers to customers in the amount of Rp 242 million which is payable 24 months after delivery. The contract allows the customer to return the product within 90 days. Since this product is a new product launched in 2021, the entity has no basis for estimating the product. If the customer pays immediately when the product is delivered then the price is IDR 200 million, which is the amount the customer will pay at the time of delivery for the same product sold under the same terms and conditions as in the contract with the 24-month payment scheme. The cost of the product is Rp. 80. (implicit interest rate 10%).

Required -

A. Make an analysis of PT ABC's sales contract in 2021 for each of the 5 steps according to PSAK 72.

b. Prepare journal entries when:

(i) the entity delivers the product to the customer,

(ii) on the 30th day and 60th day after the product is made,

(iii) after 90 days have passed.

Reference no: EM133020940

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