The following information relates to Pinetown Traders at 28 February 2022: Balances: Trade receivables control account (1
Question:
The following information relates to Pinetown Traders at 28 February 2022:
Balances:
Trade receivables control account (1 March 2021)
R 15 722
Allowance for credit losses (1 March 2021)
R 1 358
Credit losses recovered
R 699
Credit sales
R 114 501
Settlement discount granted
R 1 868
Additional information
(1) Debtor, A Zulu, was declared insolvent and his account of R341 has to be written off.
(2) It was determined that the allowance for credit losses account should amount to R3 341 at 28 February 2022. As credit losses occur the credit losses is written off against the allowance for credit losses account.
What is the total amount with which the credit losses account will be adjusted in the accounting records of Pinetown Traders, after taking the above information into account?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill