1 3 Question 4 [24 Mark | 36 MINUTES) Victoria Ltd.'s statement of financial position at 31 December 2019, is presented below. Victoria Ltd. Statement of Financial Position As at 31 December 2019 Inventory R 9,400 Share capital-ordinary R20,000 Accounts receivable 19,780 Retained earnings 12.730 Allowance for doubtful accounts (800) Accounts payable R8,750 Cash 13.100 R41,480 R41,480 During January 2020, the following transactions occurred. Victoria uses the perpetual inventory method. Jan. Victoria accepted a 4-month, 8% note from Merando Company in payment of Merando's R1 200 account. Victoria wrote off as uncollectible the accounts of Inwood Corporation (R450) and Khoza Company (R280). Victoria purchased R 17 200 of inventory on account 11 Victoria sold goods for R28 420 on account. The goods were priced to earn the company a profit margin of 45 percent on cost of goods sold. 15 Victoria sold inventory that cost R700 to Mark Lubbe for R1 000. Lauber charged this amount on his Visa First Bank card. The service fee charged Victoria by First Bank is 3%. 17 Victoria collected R22 900 from customers on account. 21 Victoria paid R14 300 on accounts payable. 24 Victoria received payment in full (R280) from Khoza on the account written off on 3 January 27 Victoria purchased supplies for R1 400 cash. 31 Victoria paid other operating expenses, R3 718. Adjustment data: Interest is recorded for the month on the promissory note from January 1. Credit losses are expected to be 6% of the 31 January 2020, accounts receivable. A count of supplies on 31 January 2020, reveals that R560 remains unused. 8 1 It You are required a. Prepare journal entries for the above transactions (Include entries for cost of goods sold using the perpetual system. Ignore value added tax and but do not ignore narrations to journal entries) [16 marks) b. Prepare the adjusting journal entries. (provide narrations to the journal entries) [8 marks)