Toys Pty Ltd is currently under investigation for providing defective products to their customers. If found guilty, Toys Pty Ltd may be required to compensate their customers for approximately $850 000. The court case is still pending and the outcome will not be known until later in the next financial year. For the current financial year, the amount of $850 000 will be:  Group of answer choicesrecognised in the statement of financial position as an asset.recognised in the statement of financial position as a contingent liability.disclosed in the notes to the financial statements as a contingent liability.recognised in the statement of financial position as a liability.

An entity is currently under investigation for providing defective products to their customers. If found guilty, the entity may be required to compensate their customers for approximately $500,000. The court case is still pending and the outcome will not be known until later in the next financial year. For the current financial year, the amount of $500,000 will be:recognised in the balance sheet as a contingent liabilitydisclosed in the notes to the financial statements as a contingent liability.recognised in the balance sheet as an asset.recognised in the balance sheet as a liability.

Wombat Pty Ltd purchased inventory with an invoice price of $1,000 and credit termsidentified on the invoice of 2.5/10, n/30. What do these terms mean to Wombat Pty Ltd?a. no discount is applicable if paid within 10 days.b. the full invoice value of $5,000 is payable within 10 days.c. a discount of 2.5% applies no matter when the invoice is paid.d. a discount of 2.5% will be applied if the invoice is paid within 10 days of the date ofthe invoice.

On Dec. 7, Toys R Fun purchased $1,000 of merchandise with terms of 2/10,n/30. If payment is made on December 16, demonstrate the required journal entry for Toys R Fun to record the payment under the perpetual inventory system.Multiple choice question.Debit Merchandise Inventory $20; debit Cash $980; credit Accounts Payable $1,000.Debit Accounts Payable $1,000; credit Cash $980; credit Merchandise Inventory $20.Debit Accounts Payable $1,000; credit Cash $1,000; credit Purchase Discounts $20.Debit Accounts Payable $1,000; credit Cash $1,000.

Ngwenya (Pty) Ltd incurred the following legal expense during the 2024 year of assessment ended 29 February 2024: i) R12 000 legal costs for debt collection;ii) R30 000 legal costs relating to the drawing up of an agreement to purchase a piece of land;iii) R55 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods. Ngwenya (Pty) Ltd's lawyers were successful in defending the company on this matter.Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.

Toy Company purchased merchandise, the invoice,P169,500 includes P9,000 for freight and terms 3/15, n/30.  Merchandise in the amount of P24,000 was returned, and the balance of the invoice was paid within the discount period.  How much cash was disbursed by Toy in full settlement of the account?*a. P169,500b. P140,920c. P145,000d. P14,000