Zeta Ltd is a business that conducts the majority of its sales on a credit basis. The business’s policy with regard to the accounting treatment of irrecoverable accounts is:

1 Write off all bad debts authorised by the credit manager to the allowance for bad debts account.

2 Maintain an allowance for bad debts account at the end of each financial year, equal to 5% of outstanding accounts receivable balances.

3 Reinstate accounts receivable balances previously written off and credit the proceeds of any ‘bad debts recovered’ to the accounts reinstated.

4 Transfer any material debit or credit balances on the allowance for bad debts account resulting from incorrect estimates made in the previous year, to the profit and loss account as a separate item.

On 1 January 20x8, the credit balance brought forward on the allowance for bad debts account was R4 120.

Transactions, adjusting entries and closing entries affecting bad and possible bad debts for the year ended 31 December 20x8 were:

16/01 Wrote off R500 owed by J. Kelly who is completely insolvent.

22/03 Received R80 from J. Last whose account had been written off as bad during 20x7.

18/06 Received a first and final dividend of 10c in the R1 from L. Masha, who owed R600, and wrote off the balance of his account.

15/12 Wrote off these accounts as bad debts:

* E. Holland R290

* V. Aphane R810

31/12 Recorded the adjusting entry for the year-end allowance for bad debts based on the outstanding accounts receivable total of R30 400.

31/12 Recorded the closing entry for bad debts recovered.

You are required to:

Record the transactions in the general journal. (Ignore VAT.)