Side panel 1There are 1 unread conversations FAC1502-24-S1 Welcome to FAC1502 Assessment 5 QUIZ Assessment 5 Time left 0:04:11 Question 7 Not yet answered Marked out of 28.00 Flag question Question text Thomas Trading, a registered VAT vendor, uses the periodic inventory system. The VAT rate is 15%. The following is an extract from the financial records of Thomas Trading for January 2024: R Trade receivables: opening balance (1 January) 55 000 Credit sales 182 300 Cash receipts journal: Trade receivables column total (31 January) 93 600 Sales returns journal: Trade receivables column (31 January) 10 400 At month's end, the Bookkeeper completed a debtor’s reconciliation and found the following: On 10 January, a client returned goods sold to him on credit in the amount of R1 020. This transaction was incorrectly recorded in the Purchases returns journal instead of the Sales returns journal. The trade receivables column in the cash receipts journal was undercast by R1 400. On 18 January, goods sold on credit in the amount of R7 600 were recorded in the sales journal as R6 700. No journal entry has been made to correct this error. On 15 January 2024 Thomas Trading was informed that S Cook, a debtor who owed the entity R1 500, had been declared insolvent. The amount must be written off as irrecoverable. On 31 January 2024 Thomas Trading charged interest on overdue clients’ accounts of R170.
