Dr. Phil McCavity is confused about one of the transactions that was recorded for July 2020 (refer to Question 2), and has written to the Managing Partner of the accounting firm that you work for seeking clarification.

you must write letter in your own words to the Managing Partner of your firm (not the client).In this letter, you must explain (with reference to the appropriate accounting definition) which accounting element* was debited on 5 July 2020( 5 July

( Dental Equipment

134 000 ) (Cash at Bank 134 000)

(The business purchased dental equipment for $134 000 in cash)

and explain how this definition was applied when recording the transaction.

*(Element = Asset, Liability, Equity Income or Expense)

If the Managing Partner is satisfied with your explanation, they will use it as the basis of a response to the client.

(4 marks)

The remaining 3 marks will be awarded for following the formatting and professional business writing requirements below.

Date your letter 30 September 2020

Address your letter to: Janelle Ledger (Managing Partner), JLL Accounting Pty Ltd, 44 The Parade, Norwood, SA, 5067

Any formal business letter format is acceptable.Please note that a template has not been provided.