BrightSunElectronicsisaretail companyspecialisinginthesaleofelectronicdevicesandaccessories.Theyofferawiderangeofproducts, includingsmartphones,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 BrightSunElectronicsasat31 December2023:

BankR100000TradeReceivablesR593000AllowanceforDoubtfulDebts(01/01/2022)R30 000

Thefollowingtransactionshavenotyetbeenprocessedinthecompany's records:

1. Saleofgoods orservicesoncredit:

On15December2023,BrightSunElectronicsmadecreditsalestovarious customersfora total amount of R450000and cash sales of R50000.

2. Cashcollectionsfromcustomers:

During December 2023, customers made cash payments amounting to R200 000towardstheiroutstanding balances.

3. Salesreturnsandallowances:

On20December2023,acustomerreturneddefectivemerchandisevaluedatR10 000. The company issued a credit note to the customer for the returned items.Thecustomer'soriginal purchasewasoncredit andwasnotyetpaidfor.

4. Irrecoverabledebt:

On 1 December 2023, it was confirmed that debtor Mr. Johnson, with an outstandingbalanceofR5000,wasdeclared insolventandwasonlyabletorepay20%ofthetotal outstanding amount. The company received the 20% payment from Mr. Johnsonsattorneysbytheend ofthe year.

5. Baddebtrecovery:

On5December2023,Mr.Smith,whohadapreviouslywritten-offbalanceofR12500(recognized as a bad debt), made full payment towards his outstanding balance,demonstratinghisintentiontosettlethedebt.Inaccordancewiththecompany's policy,debtorswithpreviouslywritten-offbalancesarereinstatedwhenpaymentsarereceived subsequently.

6. Baddebtwrite-off:

It was determined on 31 December 2023 that a specific customer's outstandingbalance of R30 000 was uncollectible. The company decided to write this amount offasabaddebt expense.

7. Allowancefordoubtful debts

Based on historical collection experience, BrightSun Electronics estimated that 4% ofthe outstanding trade receivables at 31 December 2023 would become uncollectible.Theallowancefordoubtfuldebts needstobeadjusted accordingly

REQUIRED:

1. PreparetheTradeReceivablesAccountasitwouldappear intheGeneralLedgerofBrightSunElectronicsfortheyearended31December2023.

Instructions:

• Includethenecessaryadjustmentswhichwerenotyetrecorded.
• Includethenecessarycalculations.
• Closeofftheaccountappropriately.
• VATandtaxmaybeignoredforthisquestion.
• Assumethattherewerenoothertransactions.

(13marks)

2.Prepare anextractof the Statement of Financial Position to present only theCurrent Assetsfor BrightSun Electronics for the financial year ended on 31December 2023.Notes are not required. Totals and subtotals are requiredwhereapplicable.