On 15 May 2021, Bauk Consumer Electrical Berhad sent a Purchase Order to AM Supplier requesting for some raw materials. On 3 June 2021 company received the raw materials together with an invoice worth RM88,800. Additional costs incurred include delivery charges of RM1,900 and insurance on purchase of RM1,660. On 5 September 2021, company paid half of the outstanding debt to AM Supplier by cheque and received 10% discount given by the supplier. On 28 December 2021, company paid the remaining balance to AM Supplier by issuing a cheque. Required:Discuss whether Bauk Consumer Electrical Berhad can derecognize AM Supplier from company’s book on 31 December 2021.

On 15 May 2021 - Purchase Order sent to AM Supplier requesting for some raw materials. On 3 June…

Answered: iscuss whether Bauk Consumer Electrical…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Related questions

Question

On 15 May 2021, Bauk Consumer Electrical Berhad sent a Purchase Order to AM Supplier requesting for some raw materials. On 3 June 2021 company received the raw materials together with an invoice worth RM88,800. Additional costs incurred include delivery charges of RM1,900 and insurance on purchase of RM1,660.

On 5 September 2021, company paid half of the outstanding debt to AM Supplier by cheque and received 10% discount given by the supplier.

On 28 December 2021, company paid the remaining balance to AM Supplier by issuing a cheque.

Required:

Discuss whether Bauk Consumer Electrical Berhad can derecognize AM Supplier from company’s book on 31 December 2021.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions