D Ltd. prepares financial statements to 31 st March each year. Following information on revenue transactions are relevant to the year ended 31 st…

D Ltd. prepares financial statements to 31 st March each year. Following information on revenue transactions are relevant to the year ended 31 st March 20X7. (i) On 1 st October 20X6, D Ltd. sold a product to a customer for 1,21,000. This amount is payable on 31 st December, 20X8. The manufacturing cost of the product for D Ltd. was - 80,000. The customer had a right to return the product for a full refund at any time up to and including 31 st December 20X6. At 1 st October 20X6, D Ltd. had no reliable evidence regarding the likelihood of the return of the product by the customer. The product was not returned by the customer before 31 st December 20X6 and so the right of return for the customer expired. On both 1 st October 20X6 and 31 st December 20X6, the cash selling price of the product was - 1,00,000. A relevant annual rate to use in any discounting calculations is 10%. (ii) On 1 st July 20X5 D Ltd. began an arrangement to sell goods to a third party B Ltd. The price of the goods was set at 100 per unit for all sales in the two-year period ending 30 th June 20X7. However, if sales of the product to B Ltd. exceed 60,000 units in the two-year period ending 30 th June 20X7, then the selling price of all units is retrospectively set at 90 per item. Sales of the goods to B Ltd. in the nine-month period ending on 31 st March, 20X6 totalled 20,000 units and this volume of sales per month was not expected to change before 30 th June 20X7. However, in the year ended 31 st March, 20X7, total sales of the goods to B Ltd. were 35,000 and based on current orders from B Ltd., the estimate was revised. The directors of D Ltd. estimated that the total sales of the goods to B Ltd. in the two-year period ending 30 th June 20X7 would be more than 60,000 units. On the basis of the facts given above, chose the most appropriate answer to Questions 1 to 5 below based on the relevant Indian Accounting Standards (Ind AS).