BrightSun Electronics is a retail company specialising in the sale of electronic devices and accessories. They offer a wide range of products, including smartphones, laptops, and home entertainment systems. The company has a financial 31 December year-end.

You are provided with an extract from the pre-adjustment trial balance of BrightSun Electronics as at 31 December 2023:

Bank- R100 000

Trade Receivables- R593 000

Allowance for Doubtful Debts (01/01/2022)- R30 000

The following transactions have not yet been processed in the company's records:

1. Sale of goods or services on credit: On 15 December 2023, BrightSun Electronics made credit sales to various customers for a total amount of R450 000 and cash sales of R50 000.

2. Cash collections from customers: During December 2023, customers made cash payments amounting to R200 000 towards their outstanding balances.

3. Sales returns and allowances: On 20 December 2023, a customer returned defective merchandise valued at R10 000. The company issued a credit note to the customer for the returned items. The customer's original purchase was on credit and was not yet paid for.

4. Irrecoverable debt: On 1 December 2023, it was confirmed that debtor Mr. Johnson, with an outstanding balance of R5 000, was declared insolvent and was only able to repay 20% of the total outstanding amount. The company received the 20% payment from Mr. Johnsons attorneys by the end of the year.

5. Bad debt recovery: On 5 December 2023, Mr. Smith, who had a previously written-off balance of R12 500 (recognized as a bad debt), made full payment towards his outstanding balance, demonstrating his intention to settle the debt. In accordance with the company's policy, debtors with previously written-off balances are reinstated when payments are received subsequently.

6. Bad debt write-off: It was determined on 31 December 2023 that a specific customer's outstanding balance of R30 000 was uncollectible. The company decided to write this amount off as a bad debt expense.

7. Allowance for doubtful debts: Based on historical collection experience, BrightSun Electronics estimated that 4% of the outstanding trade receivables at 31 December 2023 would become uncollectible. The allowance for doubtful debts needs to be adjusted accordingly.

REQUIRED:

1.1. Prepare the Trade Receivables Account as it would appear in the General Ledger of BrightSun Electronics for the year ended 31 December 2023.

Instructions:

Include the necessary adjustments which were not yet recorded. Include the necessary calculations. Close off the account appropriately. VAT and tax may be ignored for this question. Assume that there were no other transactions.

1.2. Prepare an extract of the Statement of Financial Position to present only the Current Assets for BrightSun Electronics for the financial year ended on 31 December 2023. Notes are not required. Totals and subtotals are required where applicable.