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Gizmo Enterprises provided you with the following information regarding the list of totals and balances on 28 February 20.8 R Total of the trade receivables
Gizmo Enterprises provided you with the following information regarding the list of totals and balances on 28 February 20.8 R Total of the trade receivables column in the sales journal... 276 080 Total of the trade payables column in the purchases journal... 215 200 Total of the trade receivables column in the sales returns journal....... 4000 Total of the trade payables column in the purchases returns journal......... 8 600 BALANCES OF GENERAL LEDGER ACCOUNTS Balance of allowance for credit losses (1/03/20.7). 2040 Balance of trade receivables control account (1/03/20.7). 40 800 Additional information a. Mr D Sithole's account of R1 500 must still be written off as irrecoverable. b. It was determined that the allowance for credit losses account should amount to R4 000 on 28 February 20.8. The allowance for credit losses account remains unchanged during the year. Which one of the following represents the correct general ledger entries for credit losses in the trade receivables control account if Mr D Sithole's account must be written off as irrecoverable? A. General ledger Amount Account to be debited Account to be credited Trade receivables control Credit losses 3 000 R B. General ledger Account to be debited Credit losses Account to be credited Trade receivables control Amount R 3460 C. General ledger Account to be debited Credit losses Account to be credited Trade receivables control Amount R 3 000 D. General ledger Account to be debited Credit losses Account to be credited Trade receivables control Amount R 1 500 E. General ledger Account to be debited Credit losses Account to be credited Trade receivables control Amount R 4 000
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