acca $-$ TAX$-$QUESTION $4(10$ marks$)$

Mr$.$ N$,$ a trader in goods, is registered for value added tax $($VAT$).$

The following information relates to his return for the period to $31\mathrm{.}3\mathrm{.}2017.$

All figures are excluded any applicable VAT.

Sales of goods amounted to:

Mr$.$ N offers his credit sale customers a discount of $4\%$ for prompt payment.

$75\%$ of Mr$.$ N$\text{'}$s credit sale customers paid within the discount period.

Purchases of goods amounted to:

Purchases of services amounted to EUR $4700,$ including EUR $600$ for business entertaining at a

local restaurant and EUR $500$ for the running expenses of Mr$.$ N$\text{'}$s private motor car.

Required

Calculate the amount of value added tax $($VAT$)$ payable by Mr$.N$ for the return period ending $31\mathrm{.}3\mathrm{.}2017.$