Question: On 2 8 February 2 0 2 3 , the last day of the financial period, the following balances appeared in the books of Adorable

28

February

2023,

the last day of the financial period, the following balances appeared in the books of Adorable Dogs:

Purchases, R

620 000

Sales, R

800 000

Sales returns, R

9 000

During February

2021,

a debtor, MM Motsamai, returned merchandise with an invoice price of R

850 .

This transaction has not yet been recorded. Indicate what the effect of this transaction will have on the statement of profit or loss and other comprehensive income for the year ended

28

February

2021

.

Sales returns

=

9 000 +

850

.

Sales

=

800 000 -

850

.

Purchases

=

620 000

850

.

Sales returns

=

9 000

850

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