On 1 January 20X1, Morvan receives 800,000 from a customer for a flight simulator that it will deliver on 31 December 20X2. It recognised a contract liability and concluded that there is a significant financing component. The rate of a separate financing transaction from the customer to Morvan, reflecting Morvan's credit risk, is 6% (case data). Record the financing entry at 31 December 20X1.
- Advance received
- 800,000
- Rate of a separate financing transaction reflecting the entity's credit risk
- 6 %