Mr Gugu and Lethu are members of Gugulethu CC. The bookkeeper attempted to prepare the financial statements of the entity however, he lacked the technical know- how of the task. The following information is extracted from the workings of the bookkeeper and relates to the close corporation on 28 February 2021, the end of the financial year: Vehicles Land and buildings Long-term loan Inventory (1 March 2020) Trade receivables control Trade payables control Purchases Purchases returns Settlement discount granted Freight on sales Interest on long-term loan Sales returns Insurance expense Settlement discount received Allowance for credit losses Bank R 780 000 1 210 000 520 000 52 000 150 000 84 790 761 000 5.100 2800 12 300 48 875 2 300 48 000 850 1.900 112 050 Additional information: 1. Abstract from the member's arrangements 1.1. 1.2. Members are entitled to commission of 4% of total revenue for the financial year The members agreed that their business will operate on a 4% gross profit on net sales. 2. Year-end adjustments 2.1. 2.2. 2.3. 2.4. On 28 February 2921 the inventory on hand amounted to R82 000 An outstanding debt of R4 800 is irrecoverable and must be written off. R1 800 has been recovered from previously written off debts The allowance for credit loss must be adjusted to R1 500 One of the vehicles of the entity was involved in an accident on 30 November 2020. The car was repaired from the insurance claim and excess