QUESTION $3$

$(30$ marks$)$

Bees Books $($Pty$)$ Ltd $("$Bees Books"$)$ is a bookstore in Cape Town with a $30$ November

financial year$-$end. Bees Books make use of the perpetual inventory system.

Bees Books is a registered VAT vendor.

The following transactions have not yet been recorded for the financial year ended $30$

November $2024$:

Bees Books sold $100$ books on credit in October $2024$ with an invoiced amount

of R$36000($including VAT$).$ The cost price of these books sold was R$15000$

$($excluding VAT$).$

$15$ of the books sold in October had water damage and the customers returned

these books within one week of purchase.

At the end of October $2024,$ Bees Books received R$28000$ cash from outstanding

debtors.

In November $2024,$ Bees Books sold $250$ books on credit with a total selling price

of R$62500($excluding VAT$)$ and a cost price of R$150($excluding VAT$)$ per book.

Bees Books wanted to encourage debtors to pay the amount owing and offered

a settlement discount of $10\%$ if they pay within $10$ days of purchase. Bees Books

believes that all customers who bought books in November $2024$ will make use

of the discount.

Within $10$ days of purchase all the customers who bought the $250$ books during

November $2024$ made use of the settlement discount.

On $2^{th}$ of November $2024$ Bees Books received an email from a lawyer stating

that E Brooks, a debtor with an outstanding balance of R$3000,$ is insolvent and

that a settlement of $20$ cents in the Rand would be paid on the ${15}^{th}$ of November

The remaining balance should be written off as irrecoverable.

ANNEXURE F: FORMATIVE ASSESSMENT $1$

Management of Bees Books estimated that $5\%$ of the outstanding trade receiv$-$

able balance on $30$ November $2024$ would be irrecoverable. There was no allow$-$

ance for doubtful debt for the year ending $30$ November $2023.$

REQUIRED:

Prepare the general journal entries for all the transactions the

$2024$ financial year in the accounting records of Bees Books $($Pty

Journal dates and narrations are not required.

Show all calculations and references accordingly.

Round off to the nearest Rand where applicable.