91 T F8 DO P fo QUESTION 3 (25 Marks) BSG Traders is a company that manufactures handmade leather shoes. The company accountant, Miss A Ntintelo, is in the process of preparing the Debtors' Reconciliation for the month of March 2024. The following information is available to her: Trade receivables (29/02/24) R 60 652 (The balance is a net 5% allowance for doubtful debts) Total column of the sales journal 32 804 Trade receivable column in the Cash Receipts Journal 37 224 Credit sales returns for the month 5 310 Closing balance on the Debtor's List 44 132 + In early March, a decision was taken to write off a debtor, A. Dereck, as bad. A. Dereck, a known gambler who went missing after a high-stakes poker game, had purchased goods to the value of R4 180 in the previous month. On the 29 of February, another debtor, B. Bauti, was declared insolvent. Reliable estimates from the executor indicate that creditors will able to recover 16c in the rand. The outstanding balance on his account was R6 607. On the last day of the month, a cheque was received from A. Dereck in full pay- ment of his outstanding balance. As it turned out, he had been in Spain betting on football. When comparing the Debtor's Ledger with the General Ledger, Miss Ntintelo identified the following errors; A credit sale to a customer, G. Brians, was incorrectly accounted for in the com- pany books. the sale was for R9 322, and Mr Brians was offered a 10% trade discount for his bulk purchase. The sale was recorded as follows in the General Ledger: Dr Trade receivables Cr Sales R9 322 R9 322 The transaction was correctly dealt with in the Debtor's Ledger. ABC maintains their allowance for doubtful debts at 5% of the outstanding trade receivables balance at month end.. Required; a) Prepare the trade receivable account in the General Ledger (9 marks) (6 marks) b) Prepare the account of A. Dereck in the debtors' Ledger c) Prepare ALL the entries in the general journal with regard to Bad debts and al- lowance for doubtful debts. (10 marks)