Additional Information:The following has not been taken into account in arriving at the figures above:1. An amount of R5 202 owing by a debtor, F Skelm, must be written off asirrecoverable.2. The allowances for credit losses must be increased by R2 250.3. On 10 December 2021, goods to the value of R6 300 was purchased on credit, butwas incorrectly recorded in the sales journal.4. The credit balances in the debtors' ledger at 1 January 2021 must be transferred tothe creditors control account. The following information was extracted from the accounting records of Mega Store(Pty) Ltd on 31 December 2021.RSales journal78 102Purchases joumalSales returns journal50 6528 640Purchases returns journalCash receipts journal :4 356Debtors control column85 680Settlement discount granted column15 120Sales column149 778Cash payments journal:Purchases column88 506Debtors control column10 638Creditors control column81 720Settlement discount received column11 934General Journal: (Sundry entries)Debtors control: Debits: Sale of Vehicle12 186Credits: Credit losses1 860Creditors control: Debits:NILCredits: Purchased Equipment9 594General Ledger: Balances at 1 January 2021 –Debtors control account: debit balance121 140: credit balance2736Creditors control account: credit balance (only)82 116

Assets are resources that are controlled which results from prior transactions that are expected to…

Answered: The following has 1. An amount of…

Business

Accounting

The following has 1. An amount of irrecoverable.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 4RE: Refer to RE6-3. Assume Long records accounts receivable and sales using the net price method....

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Additional Information:
The following has not been taken into account in arriving at the figures above:
1. An amount of R5 202 owing by a debtor, F Skelm, must be written off as
irrecoverable.
2. The allowances for credit losses must be increased by R2 250.
3. On 10 December 2021, goods to the value of R6 300 was purchased on credit, but
was incorrectly recorded in the sales journal.
4. The credit balances in the debtors' ledger at 1 January 2021 must be transferred to
the creditors control account.

The following information was extracted from the accounting records of Mega Store
(Pty) Ltd on 31 December 2021.
R
Sales journal
78 102
Purchases joumal
Sales returns journal
50 652
8 640
Purchases returns journal
Cash receipts journal :
4 356
Debtors control column
85 680
Settlement discount granted column
15 120
Sales column
149 778
Cash payments journal:
Purchases column
88 506
Debtors control column
10 638
Creditors control column
81 720
Settlement discount received column
11 934
General Journal: (Sundry entries)
Debtors control: Debits: Sale of Vehicle
12 186
Credits: Credit losses
1 860
Creditors control: Debits:
NIL
Credits: Purchased Equipment
9 594
General Ledger: Balances at 1 January 2021 –
Debtors control account: debit balance
121 140
: credit balance
2736
Creditors control account: credit balance (only)
82 116

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