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Hi Mike,
If seller agreed above treatment. Rev. is 2m in two years, discount rate is 4%. How to show the transaction in current year?
Dr. AR 2m/(1.04×1.04)
Cr. Revenue 2m/(1.04×1.04)How to deal with the interest?
Thanks,
QinCould you please check below amount? I am not strong for any finance cost/income 🙁
Dr AR 2Mx4%
CR Finance income 2Mx4%Thanks,
Qin
No!
((2m / 1.04^2) * 4%) is unrolling the discount for the first year.
Qin, why are you asking these questions? This is a basic F5 / F7 / F9 topic
And if you’re not strong on finance income / costs, what are you doing entering the P2 room next Tuesday?
u r quite right, I have passed F with many many difficulties. I am so lucky to learn from your answers. Qin
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