CT (SSN, Chp 7) E7-7
Halifax Manufacturing allows its customers to return
merchandise for any reason up to 90 days after delivery and
receive a credit to their accounts. The company began 2011
with an allowance for sales returns of $300,000. During 2011,
AB1102 SEMINAR 9
Ng Jie Qi
(i) Determine the cost of the ending inventory as at 31 December 2011.
1 Jan 2011
Quantity Unit Cost ($)
Demand for Financial Statements
Investors: form opinions on value of company
Creditors: assess companys ability to meet financial obligations
Information helps users in assessment of amount, timing, and uncert
a. Arise in ordinary course of business
a. May or may not be in the ordinary course of business
2 Main issues in Revenue Recognition
1) Should recognise revenue to depict t
(Incorporated in Singapore)
Statement of comprehensive income
for the year ended _ _
Cost of Sales
Other operating expenses
Notes to Financial Statement
1. General Information
Legal form: Limited Liability Company.
Country of incorporation: Singapore.
Address of registered office:
The financial statements are expressed in Singapore dollars.