A-Hope Company operates as a sole trader. Below is a trial balance extracted from her books as at 31 December 2020. Trial balance for Hope Youssef as at 31 December 2020 Debit Credit Sales revenue 685,000 Inventory (as at 1 January 2020) 105,800 Purchases 625,200 Non-current assets al cost: Equipment 100,000 Motor vehicle 80,000 Accumulated depreciation: Equipment 10,000 Motor vehicle 10,000 Insurance 14.700 Rent 30.000 Heating and lighting 10,000 Salaries and wages 30,000 Motor expenses 15,300 Miscellaneous expenses 28.000 Receivables 110.000 Allowance for receivables 14.000 Payables 101.000 Cash 81,000 Bank loan 100,000 Capital 310,000 Total 1.230.000 1.230.000 Additional information is provided for use in preparing the company's adjustments: The value of closing inventory is 102,500. 2 On November 1, Hope Company borrowed 100,000, at 6% annual interest, from the National Bank. Hope Company has 120 days before the first payment is required. 3 Hope has paid her rent until 31 March 2021. Her annual rent is 24,000. 4 Office equipment has a useful life of ten years and a residual value of O. It is to be depreciated on a straight-line basis. 5 The motor vehicle with a useful life of ten years and an estimated residual value of 30,000 is to be depreciated on a straight-line basis at a rate of 10% 6 Hope finds that receivables of 10,000 need to be written off as irrecoverable. 7 The allowance for receivables is to be set at ten per cent of the remaining outstanding receivables as at 31 December 2020. 8 The heating bill will arrive on 5 January and about 1,000 is expected to relate to the period until 31 December