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I am struggling with the general ledger entries QUESTION 2 (20 marks; 36 minutes) Ignore VAT Trendz is a retailer buying and selling clothing. The

I am struggling with the general ledger entries

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QUESTION 2 (20 marks; 36 minutes) Ignore VAT Trendz is a retailer buying and selling clothing. The owner, Mrs Obama has adopted a perpetual system to record inventory and decided to use the First-In First-Out (FIFO) method to assign costs to the inventory sold. On 28 February 2020, the bookkeeper presented Mrs Obama with the following incomplete general ledger accounts for the period 1 January 2020 to 28 February 2020. Inventory Rand Rand Jan 01 Balance (700 units @ R7) 4 900 Jan 06 Bank (300 units @ R7.50) 2 250 Feb 07 Bank (300 units @ R8.00) 2 400 Sales Feb 05 Bank (400 units @ 4 800 R12.00) Feb 10 Bank (550 units @ 6 600 R12.00) You are required to: a) Prepare the cost of sales account, given that the FIFO method is used, as it should appear in the general ledger for the period I January 2020 to 28 February 2020. (Contra details must be shown.) (5 marks) b) Calculate the closing inventory, given that the FIFO method is used, as at 28 February 2020. (4 marks)

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