Pure Organics (Pty) Ltd is a business that sells organic supplements to the general public. The...
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Pure Organics (Pty) Ltd is a business that sells organic supplements to the general public. The company operates on a financial year-end of 31 December and is not registered for VAT. The following transactions took place during December 2022 that have NOT yet been recorded: No. a. b. C. d. Transaction Detail During the posting of sales journal totals to the general ledger at the end of November 2022, the sales column was incorrectly posted as R156 500 instead of R165 500. Total credit sales for December amounted to R94 972. Total cash sales for December amounted to R17 245. Honey Bee, a trade receivable, was declared insolvent during 2022 with a total debt owed to Pure Organics (Pty) Ltd of R20 350. The lawyers of Honey Bee confirmed that the company would receive 46 cents for each Rand owed. The settlement was received on 31 December 2022, and the remaining debt was written off as irrecoverable. ● ● ● e. Additional information: Ignore VAT. Trade receivables has an opening balance of R156 667 on 1 December 2022. Allowance for doubtful debts has an opening balance of R19 340 on 1 December 2022. Ignore the cost of sales and inventory for all relevant transactions. ● f. g. Green Guy, another trade receivable of Pure Organics (Pty) Ltd, paid their outstanding balance of R11 465 on 31 December 2022. On 31 December 2022, trade receivables to whom sales totalling R15 000 had been made in the previous financial year were considered irrecoverable and were written off as bad debt. The R15 000 was included in the allowance for doubtful debts opening balance. Pure Organics (Pty) Ltd estimated that it was unlikely to collect 9% of outstanding trade receivables on 31 December 2022. REQUIRED: Prepare the Trade Receivables general ledger account (T- Account) to account for the December 2022 transactions in the records of Pure Organics (Pty) Ltd. ● Dates are not required. The account must be closed-off at the end of the month. Remember to show your workings. Pure Organics (Pty) Ltd is a business that sells organic supplements to the general public. The company operates on a financial year-end of 31 December and is not registered for VAT. The following transactions took place during December 2022 that have NOT yet been recorded: No. a. b. C. d. Transaction Detail During the posting of sales journal totals to the general ledger at the end of November 2022, the sales column was incorrectly posted as R156 500 instead of R165 500. Total credit sales for December amounted to R94 972. Total cash sales for December amounted to R17 245. Honey Bee, a trade receivable, was declared insolvent during 2022 with a total debt owed to Pure Organics (Pty) Ltd of R20 350. The lawyers of Honey Bee confirmed that the company would receive 46 cents for each Rand owed. The settlement was received on 31 December 2022, and the remaining debt was written off as irrecoverable. ● ● ● e. Additional information: Ignore VAT. Trade receivables has an opening balance of R156 667 on 1 December 2022. Allowance for doubtful debts has an opening balance of R19 340 on 1 December 2022. Ignore the cost of sales and inventory for all relevant transactions. ● f. g. Green Guy, another trade receivable of Pure Organics (Pty) Ltd, paid their outstanding balance of R11 465 on 31 December 2022. On 31 December 2022, trade receivables to whom sales totalling R15 000 had been made in the previous financial year were considered irrecoverable and were written off as bad debt. The R15 000 was included in the allowance for doubtful debts opening balance. Pure Organics (Pty) Ltd estimated that it was unlikely to collect 9% of outstanding trade receivables on 31 December 2022. REQUIRED: Prepare the Trade Receivables general ledger account (T- Account) to account for the December 2022 transactions in the records of Pure Organics (Pty) Ltd. ● Dates are not required. The account must be closed-off at the end of the month. Remember to show your workings.
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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