QUESTION $3$

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$36$

$000($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 ${?}_i.$

On ${20}^{th}$ 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 $2024.$ The

remaining balance should be written

ANNEXWREF: FORMATIVE ASSESSMENT $1$

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

balance on $30$ November $2024$ would be irrecoverable. There was no allowance for

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

REQUIRED:

Prepare the general journal entries for all the transactions that occurred during the $2024$

financial year in the accounting records of Bees Books $($Pty$)$ Ltd$.$

Journal dates and narrations are not required.

Show all calculations and references accordingly.

Round off to the nearest Rand where applicable. $.$