Mr Mercer is the owner of Maximinus Traders, a computer shop that has been trading for the past 5 years. Maximinus Traders uses the periodic inventory system to record its inventory. The entity is NOT a registered VAT vendor. According to the accounting policies of the entity, depreciation must be provided for at 25% on motor vehicles, using the straight-line method, and 20% on furniture and fittings, using the reducing balance method. At the end of each year, the provision for credit losses must be adjusted to 2% of total outstanding debtors. The pre-adjustment trial balance on 29 February 2020 was extracted from the records of Maximinus Traders TRIAL BALANCE AS AT 29 FEBRUARY 2020 DR CR Capital 636 928 Drawings 13 600 Land and buildings 863 000 Motor vehicles 236 000 Accumulated depreciation: Motor vehicles 36 000 Furniture and fittings 54 000 Accumulated depreciation: Furniture and fittings 6 000 8% fixed deposit: AB Bank 20 000 Debtors control 34 840 Allowance for credit losses 360 Creditors control 44 600 Trading inventory (1 March 2019) 45 430 Bank 42 558 Sales 960 000 Rent received 33 600 Commission income 24 000 Sales returns 23 600 Purchases 244 660 Purchases returns 6 000 Advertising 3 000 Electricity 27 370 Insurance 23 680 Interest paid 742 Printing and stationery 34 658 Travel 60 000 Wages 20 350 1 747 488 1 747 488 Additional information (not yet considered): 1. Inventory on hand on 29 February 2020 amounts to R68 560. PRE SBS 2. Commission income due for February 2020, R3 890, has not been received yet. 3 An amount of R1 500, being the insurance for March 2020, is included in the insurance expense. 4. Interest earned on the fixed deposit has not yet been accounted for. 5. Wages for the last week of February 2020, R3 450, have not been paid yet. 6. Rent received from a tenant for March 2020, R3 500, was banked during February 2020. 7. Notification was received that a debtor owing Maximinus Traders R340 was declared insolvent and his debt should be written off. Required: Prepare the statement of profit or loss and other comprehensive income for the year ending 29 February 2020