Question $2\mathrm{.}5.$

The following information relates to Encyclopaediacs, an entity that trades in learning tools like, calculators, mathematical sets and electronic periodic tables. The accountant applies the perpetual inventory system.

REQUIRED

a$.$ Determine the net realisable value of the Cascio calculators on hand at $31$ December $20\mathrm{.}19.$

b$.$ Prepare the general journal entry in the records of Encyclopaediacs, for the financial year ended $31$ December $20\mathrm{.}19,$ to adhere to the net realisable value rule as included in IFRS for SMEs.

c$.$ Prepare the following general ledger accounts for Encyclopaediacs for the year ended $31$ December $20\mathrm{.}19$:

$-$ Inventory

$-$ Cost of sales

INFORMATION

$1.$ According to the accountant of Encyclopaediacs the following amounts were included in the balance of the Inventory account in the general ledger on $31$ December $20\mathrm{.}19$:

The balance of the cost of sales account as at $31$ December $20\mathrm{.}19$ was R$134650.$

$2.$ Cascio launched a new model of the calculators that Encyclopaediacs have in stock, and this influenced the selling price of the inventory. The Cascio calculators can now be sold for R$345$ per unit and the normal delivery fee to customers of R$20$ per unit still applies.

$3.$ A debtor returned two of the mathematical sets, which he bought for R$120,90$ each, due to clerical error on his side. Encyclopaediacs issued a credit note to the debtor, but this transaction has not been recorded yet.

$4.$ Due to an aggressive marketing campaign at the local schools, the demand for the electronic periodic tables increased to such an extent that the estimated selling price of these items increased with $\backslash (10\backslash \%\backslash ).$