[maths12]

Thanks mike, you have explained it perfectly you have my respect for the effort you have made in answering my question. Much appreciated mate.

[maths12]

This was the question posted on the forum
(a)Sales include goods which have been sold with a price tag that includes “free” servicing for the next 3 years. The amount included in Sales for this warranty income is £600k. Assume that the sales of goods giving rise to this income arose evenly throughout the year.

[maths12]

Yes that’s correct but I still fail to understand why in both examples we have half a year of sale and the rest is deferred income.

[maths12]

I’m sorry I just realised I posted in the forum. So if they is a similar question should I always assume that for the first half of the year is the sale and the remaining years are all defrered income

[Author]

Posts