While bringing a new production line to working condition, an entity incurs 15,000 of costs of testing whether the line functions properly, already included in its cost. The tests produce samples whose cost, measured under IAS 2, is 8,000 and was recognised as inventories. The entity sells the samples for 11,000 in cash before the line is available for use. Record the entry for the sale of the samples.
- Costs of testing whether the line functions properly (already included in its cost)
- 15,000
- Cost of the samples, recognised as inventories under IAS 2
- 8,000
- Selling price of the samples (received in cash)
- 11,000