Revenuefrom sale of goods(1)Cashsale口Dr.CashCr.Salesrevenue6
6 Revenue from sale of goods (1)Cash sale Dr. Cash Cr. Sales revenue
(2)CreditsaleDrAccountsReceivableCr.Salesrevenue口Dr.CashSalesDiscountCrAccountsReceivable7
7 Dr. Accounts Receivable Cr. Sales revenue (2)Credit sale Dr. Cash Sales Discount Cr. Accounts Receivable
(2)Creditsale口Dr.BadDebtExpenseCr.ProvisionforBadDebts8
8 (2)Credit sale Dr. Bad Debt Expense Cr. Provision for Bad Debts
Renderingof servicesRevenue from services may be recognized when the serviceis actually completed.口When the outcome of a transaction involving the renderingof services can beestimated reliably,revenue associatedwith the transaction shall be recognized by reference to thestage of completion of the transaction at the end of thereporting period.口Whenthe outcome of the transaction involving therendering of services cannot be estimated reliably, revenueshall be recognized onlytotheextent of the expensesrecognizedthat arerecoverable9
9 Rendering of services Revenue from services may be recognized when the service is actually completed. When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the end of the reporting period. When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognized only to the extent of the expenses recognized that are recoverable
Theoutcome of atransaction canbe estimatedreliably when all the following conditions aresatisfied:(a)the amount of revenue can be measured reliably(b)itis probablethatthe economic benefitsassociatedwith the transaction will flow to the entity;(c)the stage of completion of thetransactionat theend ofthe reporting period can be measured reliably, and(d)thecosts incurredforthetransactionandthecoststocompletethetransactioncanbemeasured reliably10
10 The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: (a) the amount of revenue can be measured reliably; (b) it is probable that the economic benefits associated with the transaction will flow to the entity; (c) the stage of completion of the transaction at the end of the reporting period can be measured reliably; and (d) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably