Returns – NBC Institute

FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)

Explain the financial reporting treatment for returned products under IFRS 15.

Question

On September 20, 2019, Phonetell Nigeria Limited sold 100 units of Android PT-Tablet to a major customer for N200,000 each. The PT-Tablet costs Phonetell Nigeria Limited N160,000 each.

The terms of sales are that the customers have the right to return the tablets for a full refund within 3 months. On expiration of the 3 months period, the customer can no longer return the PT-Tablet, and payment becomes immediately due. Phonetell has entered into transactions of this type with these customers previously and can reliably estimate that 4% of the Android PT-Tablets are likely to be returned within the three-month period.

Required:

Explain how the above transactions would be reported in the financial statements of Phonetell Nigeria Limited for the year ended September 30, 2019.
(4 Marks)

Answer

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Tags: IFRS 15, Returns, Revenue Recognition, Variable Consideration
Level: Level 2

Topic: Revenue from Contracts with Customers (IFRS 15)
Series: NOV 2019

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

Question

Goods sold on cash and carry basis returned by a customer is treated in the account by:

A. Debiting Sales and Crediting Cash
B. Debiting Sales and Crediting Accounts Payable
C. Debiting Inventory and Crediting Cash
D. Debiting Inventory and Crediting Bank
E. Debiting Sales and Crediting Accounts Receivable.

Answer

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Tags: Inventory, Returns, Sales
Level: Level 1

TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)

Explanation of penalties associated with VAT non-compliance including failure to register, failure to notify of address changes, and failure to submit returns.

Question

Explain the penalties associated with the following:

i. Failure to register for VAT return (2 Marks)
ii. Failure to notify the FIRS of change of address or cessation of trade or business (2 Marks)
iii. Failure to submit VAT returns (2 Marks)

Answer

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Tags: Non-compliance, Penalties, Registration, Returns, VAT
Level: Level 2

Topic: Value-Added Tax (VAT)
Series: NOV 2021

FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)

Explain the financial reporting treatment for returned products under IFRS 15.

Question

On September 20, 2019, Phonetell Nigeria Limited sold 100 units of Android PT-Tablet to a major customer for N200,000 each. The PT-Tablet costs Phonetell Nigeria Limited N160,000 each.

Required:

Explain how the above transactions would be reported in the financial statements of Phonetell Nigeria Limited for the year ended September 30, 2019.
(4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: IFRS 15, Returns, Revenue Recognition, Variable Consideration
Level: Level 2

Topic: Revenue from Contracts with Customers (IFRS 15)
Series: NOV 2019

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

Question

Goods sold on cash and carry basis returned by a customer is treated in the account by:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Inventory, Returns, Sales
Level: Level 1

TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)

Explanation of penalties associated with VAT non-compliance including failure to register, failure to notify of address changes, and failure to submit returns.

Question

Explain the penalties associated with the following:

i. Failure to register for VAT return (2 Marks)
ii. Failure to notify the FIRS of change of address or cessation of trade or business (2 Marks)
iii. Failure to submit VAT returns (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Non-compliance, Penalties, Registration, Returns, VAT
Level: Level 2

Topic: Value-Added Tax (VAT)
Series: NOV 2021

Question Tag: Returns

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FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)

Explain the financial reporting treatment for returned products under IFRS 15.

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)

Explanation of penalties associated with VAT non-compliance including failure to register, failure to notify of address changes, and failure to submit returns.

FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)

Explain the financial reporting treatment for returned products under IFRS 15.

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)

Explanation of penalties associated with VAT non-compliance including failure to register, failure to notify of address changes, and failure to submit returns.

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Question Tag: Returns

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FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)

Explain the financial reporting treatment for returned products under IFRS 15.

You're reporting an error for "FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)"

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

You're reporting an error for "FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions"

TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)

Explanation of penalties associated with VAT non-compliance including failure to register, failure to notify of address changes, and failure to submit returns.

You're reporting an error for "TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)"

FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)

Explain the financial reporting treatment for returned products under IFRS 15.

You're reporting an error for "FR – Nov 2019 – L2 – Q6c – Revenue from Contracts with Customers (IFRS 15)"

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

You're reporting an error for "FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions"

TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)

Explanation of penalties associated with VAT non-compliance including failure to register, failure to notify of address changes, and failure to submit returns.

You're reporting an error for "TAX – Nov 2021 – L2 – Q3b – Value Added Tax (VAT)"

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