Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Africa Traders is Not a registered VAT vendor. Africa Traders current financial period end on 28 February 2021. Debtors control account balance amounted to R5
Africa Traders is Not a registered VAT vendor. Africa Traders current financial period end on 28 February 2021. Debtors control account balance amounted to R5 178 and Allowance for credit losses amounted to R586 on 1 March 2020. On 28 February 2021, it was determined that allowance for credit losses should amount to R703. The bookkeeper has correctly prepared the following general journal for the month of February regarding credit losses and allowance for credit losses: General Journal for the month ending February 2021 Day Details Debit Credit 28 Dr. Credit losses R182 Cr. Debtors control R182 Credit losses recognised 28 Dr. Credit R117 losses R117 Cr. Allowances for credit losses Which of the following option represent the correct disclosure of Trade and other receivables in the statement of financial position of Africa Traders for the year-ending on 28 February 2021? A. Statement of financial position of Africa Traders for the year ending 28 February 2021 Current Assets Trade and other receivables R4 996 B. Statement of financial position of Africa Traders for the year ending 28 February 2021 Current Assets Trade and other receivables R4 879 C. Statement of financial position of Africa Traders for the year ending 28 February 2021 Current Assets Trade and other receivables R4 410 D. Statement of financial position of Africa Traders for the year ending 28 February 2021 Current Assets Trade and other receivables R4293
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started