INFORMATION

Purple Traders uses the perpetual inventory system.

On $31$ March $2024,$ a burst geyser resulted in damage to inventory that was in the show room of Purple Traders. The cost of the inventory in

the show room was R$45000,$ but a sworn appraiser of the insurance company confirmed that Purple Traders was only insured for $80\%$ of the

value of trading stock.

Purple Traders confirmed that R$15000$ of the stock in the show room was damaged beyond repair and subsequently submitted a claim to the

insurer. The insurers undertook to settle the claim within $30$ days.

Purple Traders

General journal for March $2024$