Hi,

the solution for the below is available on Chegg but i have some doubts and need some clarification. My workings and assumptions are below: Please let me know what I am doing wrong? Also, I can see that there are 5 answers for this question on Chegg but I am only able to view one answer, how do I view others? Or does Chegg only provide one answer per question.

Assumptions I made:

The R34720 already include the discount allowed

Sales overstated by 2000

Calculations

Sales = 41000 - 2000 (Point 4 from notes. K Lever - Sales Journal overstated by R2000)

= 39000

Sundry a/c: General journals

Debits:

• Debit balances from Trade payables ledger transferred to accounts in the trade receivable ledger = R490
• Interest charged on overdue accounts = 520
• Sundry a/c Debit = 490 + 520 = 1010

Credits:

• Credit losses written off = 1400
• ( Point 3 from notes ) Amount of R150 received from N Peter in full settlement of his account analyzed as sales in CRJ
• Sundry a/c Credit = 1400 + 150 = 1550

Reconciliation

List of trade receivables as at 31 May 2020 32460

Correction of error N Peter (150)

Balance as per Trade Receivables Control a/c 32310

The following information was obtained from the financial records of J Moody. The information is in respect of month ended 31 May 2020. R 41 000 34 720 2 940 3 280 The following are totals extracted from the relevant journals for the month ended 31 May 2020: Sales journal (Trade receivables column). Cash receipts journal: Trade receivables column Settlement discount granted column Sales returns journal (Trade receivables column). Purchases journal (Trade payables column). Purchases returns journal (Trade payables column). General journal: Credit losses written off. Debit balances from Trade payables ledger transferred to Accounts in the trade receivable ledger. Interest charged on overdue accounts. 26 840 4 390 1 400 490 520 Additional information: 1. The balance of trade receivables control account at 30 April 2020 was R39 380. 2. The total of the list of trade receivables at 31 May 2020 is R32 460. 3. An amount of R150 received from N Peter in full settlement of his account was analysed as sales in the cash receipts journal. 4. An invoice dated 16 May 2020 issued to K Lever was overstated by R2 000. The invoice was entered into the sales journal at the overstated amount. Required: Prepare the trade receivables control account at 31 May 2020 properly balanced. Each entry must indicate the correct contra ledger account. (10) TRADE RECEIVABLES CONTROL ACCOUNT R R 30-Apr-20 Balance bld 39380 31-May-20 Bank 34720 31-May-20 Sales (41000-2000) 39000 Sundry a/c (420 +590) 1010 Sales returns 3280 Sundry a/c (1400 +150) 1550 Balance c/d 39840 79390 79390 1-Jun-20 Balance b/d 39840