On 1 November 2020 Donald Trading sells goods to Kamal Harris on account for N$50 000 (VAT inclusive). The goods were delivered to Kamal Harris on the same day. Donald Tradings credit terms are 30 days. Donald offers a 5.25% settlement discount to Kamal Harris if she settles her account within 5 days of the invoice date. Kamal has a history of taking advantage of the settlement discount. On 7 November 2020, the accountant of Donald Trading noticed that Kamal did not pay her account within the prescribed time of 5 days due to Kamals unhealthy cash flow experienced. Assume that both entities are VAT vendors. You may also assume that the transaction was correctly recorded at the initial recognition date.

Process the subsequent correcting journal entry (if any) as at 7 November 2020 in the records of Donald Trading