Extract of pre-adjustment trial balance of Zung Traders as at 31 August 2022 DebitCredit KKCapital (1 September 20.1)............... 200 000Drawings.......................? Inventory: Trading (1 September 20.1).........61 725 Allowance for credit losses............... 5 000Mortgage: GL Bank ..................................................................... 195 000Fixed deposit (at 7.5% per annum).............50 000 Sales............................ 345 060Carriage on purchases.................9 500 Sales returns.......................6 780 Rental income....................... 19 800Purchases.........................197 800 Purchases returns....................... 2 890Depreciation......................38 367 Salaries and wages....................88 500 Insurance expenses...................27 300 Telephone expenses.....................14 280 Water and electricity.................23 450 Credit losses.......................1 600

After a year-end inventory count, the value of trading inventory on hand was k123 450.

Additional information

(a) On 29 August 2022, Zung Traders was informed that A Langa, a debtor who owed the entity K660, had been declared insolvent. The amount must still be written off as irrecoverable.

Prepare the closing transfer journal entry for credit losses for the year ended 31 August 2022 for Zungu Traders:

HINT: There should be 2 entries. one credit and one debit.