Question 1 (Daggers Traders) 27 MARKS Daggers Traders, a sole trader, is registered as a VAT vendor and sells merchandise for cash and on credit. The applicable VAT rate is 15% and all sales take place at cost plus 25%. All selling prices are inclusive of VAT and a perpetual inventory system is in use. On 1 September 2020, the following balances appeared in the accounting records of Daggers Trader: Trade Receivable balance: Customer N. Balene S. Boshoff L. Human Total Transaction for the month of September: Balance R2 700 R2 400 R3 000 R5 670 1. Cash sales amounted to R23 028 including VAT; with related cost of sales of R16 019.48 excluding VAT. 2. Received R2 772 from L Human to settle his account. L Human has taken advantage of the settlement discount offered to her. 3. Sold goods on credit to S Boshoff for R7 410 including VAT and a cost of sales of R5 928 excluding VAT. 12. Received R705 from the attorney of N Balene together with a note that N Balene is unable to pay her debt in full. Write off the balance of this account as irrecoverable. 13. A credit note was issued for goods returned by S Boshoff for R627. The goods were in good condition. Required: Prepare the journal entries for the transactions that took place in the month of September. No narrations required. Round off to two (2) decimal places. 27 Marks 7410