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The following information was obtained from the financial records of Fine Traders on 28 February 20.8[ignore VAT) Balance of allowance for credit losses account 28/2/20.7 Balance of trade receivables control account 28/2/20.7 List of individual debtors as per trade receivables ledger Totals for the month: Cash receipt journal: Trade receivables column Settlement discount granted column Sales column Trade payables column Cash payment journal: Trade payables column Purchase column Sales R 510 13 400 12 420 69 140 3 000 101 100 1400 80 000 60 000 Purchases journal Sales return journal (all on credit sales) 69 020 53 800 1000 2150 Purchases return journal Additional information a. The trade receivables column in the cash receipts journal was overcast by R1 000 b. The trade payables column in the purchases journal was overcast by R2 000 c. A sales invoice for the amount of R600 was entered twice in the sales journal and posted twice to the personal account B Broad. d. Credit note no 31, for R500, was credit to the account of T Thin, but no other entry was made in the books. e. An invoice for the amount of RSO was correctly entered in the purchases joumal but posted as R150 to the account of N Narrow. f. An invoice for the amount of R400 was correctly entered in the purchases journal but posted as R150 to the account of D Dandy. g. The balance of P Pauper's account for R1 420 has still to be written off as irrecoverable. h. It was determined that the the allowance for credit losses account should amount to R538 at 28 February 20.8 L. The credit losses must be written off against the allowance for credit losses account. Required Prepare a properly balanced trade receivables control account for the month ending February 20.8.

The following information was obtained from the financial records of Fine Traders on 28 February 20.8[ignore VAT) Balance of allowance for credit losses account 28/2/20.7 Balance of trade receivables control account 28/2/20.7 List of individual debtors as per trade receivables ledger Totals for the month: Cash receipt journal: Trade receivables column Settlement discount granted column Sales column Trade payables column Cash payment journal: Trade payables column Purchase column Sales R 510 13 400 12 420 69 140 3 000 101 100 1400 80 000 60 000 Purchases journal Sales return journal (all on credit sales) 69 020 53 800 1000 2150 Purchases return journal Additional information a. The trade receivables column in the cash receipts journal was overcast by R1 000 b. The trade payables column in the purchases journal was overcast by R2 000 c. A sales invoice for the amount of R600 was entered twice in the sales journal and posted twice to the personal account B Broad. d. Credit note no 31, for R500, was credit to the account of T Thin, but no other entry was made in the books. e. An invoice for the amount of RSO was correctly entered in the purchases joumal but posted as R150 to the account of N Narrow. f. An invoice for the amount of R400 was correctly entered in the purchases journal but posted as R150 to the account of D Dandy. g. The balance of P Pauper's account for R1 420 has still to be written off as irrecoverable. h. It was determined that the the allowance for credit losses account should amount to R538 at 28 February 20.8 L. The credit losses must be written off against the allowance for credit losses account. Required Prepare a properly balanced trade receivables control account for the month ending February 20.8.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9E
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The following information was obtained from the financial records of Fine Traders on 28 February 20.8[ignore VAT) Balance of allowance for credit losses account 28/2/20.7 Balance of trade receivables control account 28/2/20.7 List of individual debtors as per trade receivables ledger Totals for the month: Cash receipt journal: Trade receivables column Settlement discount granted column Sales column Trade payables column Cash payment journal: Trade payables column Purchase column Sales R 510 13 400 12 420 69 140 3 000 101 100 1400 80 000 60 000 Purchases journal Sales return journal (all on credit sales) 69 020 53 800 1000 2150 Purchases return journal Additional information a. The trade receivables column in the cash receipts journal was overcast by R1 000 b. The trade payables column in the purchases journal was overcast by R2 000 c. A sales invoice for the amount of R600 was entered twice in the sales journal and posted twice to the personal account B Broad. d. Credit note no 31, for R500, was credit to the account of T Thin, but no other entry was made in the books. e. An invoice for the amount of RSO was correctly entered in the purchases joumal but posted as R150 to the account of N Narrow. f. An invoice for the amount of R400 was correctly entered in the purchases journal but posted as R150 to the account of D Dandy. g. The balance of P Pauper's account for R1 420 has still to be written off as irrecoverable. h. It was determined that the the allowance for credit losses account should amount to R538 at 28 February 20.8 L. The credit losses must be written off against the allowance for credit losses account. Required Prepare a properly balanced trade receivables control account for the month ending February 20.8.
Transcribed Image Text:The following information was obtained from the financial records of Fine Traders on 28 February 20.8[ignore VAT) Balance of allowance for credit losses account 28/2/20.7 Balance of trade receivables control account 28/2/20.7 List of individual debtors as per trade receivables ledger Totals for the month: Cash receipt journal: Trade receivables column Settlement discount granted column Sales column Trade payables column Cash payment journal: Trade payables column Purchase column Sales R 510 13 400 12 420 69 140 3 000 101 100 1400 80 000 60 000 Purchases journal Sales return journal (all on credit sales) 69 020 53 800 1000 2150 Purchases return journal Additional information a. The trade receivables column in the cash receipts journal was overcast by R1 000 b. The trade payables column in the purchases journal was overcast by R2 000 c. A sales invoice for the amount of R600 was entered twice in the sales journal and posted twice to the personal account B Broad. d. Credit note no 31, for R500, was credit to the account of T Thin, but no other entry was made in the books. e. An invoice for the amount of RSO was correctly entered in the purchases joumal but posted as R150 to the account of N Narrow. f. An invoice for the amount of R400 was correctly entered in the purchases journal but posted as R150 to the account of D Dandy. g. The balance of P Pauper's account for R1 420 has still to be written off as irrecoverable. h. It was determined that the the allowance for credit losses account should amount to R538 at 28 February 20.8 L. The credit losses must be written off against the allowance for credit losses account. Required Prepare a properly balanced trade receivables control account for the month ending February 20.8.
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