Poppy imports and sells display fireworks. She supplies her customers on credit terms, requiring payment of invoices within 30 days. In order to encourage early payment she offers customers a discount of 0.5% of invoice value for receipt of payment within 30 days.

The following is a list of Poppy’s account balances for all sales and expenses items at 28 February 20X2:

Staffing costs OF Opening stock at 1 March 20X1 7 140 SECTION 2. FINANCIAL ACCOUNTING Sales returns 399/, Import duties 9911 Rental 17 214 Discounts allowed 716 Telephone charges 1227 Purchases 123 057 Insurance 8 204 Marketing 1 888 Administrative expenses 972 Electricity 1 604 Delivery van expenses 2 107 Sales 220/713 Stock at 28 February 20X2 esos Prepare Poppy's profit and loss account for the year ending 28 February 20X2.