Bad debts 400 Wages and salaries 14,400 Electricity, water, telephone and internet 4,500 Salesmen's commission and Commission received 4,0003,380 Advertising expenses 1,440 Bank interest and charges 1,700 Stationery Motor vehicles repairs 1,100 Rent revenue 1,300 Long term loan \begin{tabular}{rr} & 35,000 \\ \hline 584,480 & 584,480 \\ \hline \end{tabular} Additional information: (i) Closing inventory 31 July 2020 for goods is $42,900. (ii) Wages and salaries accrued $2,100. (iii) Rent prepaid 31 July 2020$1,800. (iv) The rent revenue is for rent of office space from January 2020 until December 2020. Commission received still accrued amounted to $620. (v) Depreciation is to be provided as follows: Fixtures and fitting 10% on cost; Motor vehicles 20% on reducing balance method. (vi) Provision for doubtful debts to be increased to 2% of account receivables. You are required to: (a) Prepare an income statement for the year ended 31 July 2020.(20m) (b) Financial Position Statement as that date. (10m)