On 31 December 2021, a property developer has not received the December 2021 rent of 5,000 from a tenant. (a) Prepare journal entry to recognise the overdue rent revenue on 31 December 2021 in the property developer's book. Omit the narrative. (2 marks) (b) Explain the effect (understated or overstated) of not recognising the overdue rent revenue on the asset, liability and capital of the property developer. (2 marks) MCM Shop uses the lower of cost and net realisable value (NRV) basis for its inventory. The following data are available at year end. Item Units Y z 2,000 4,000 3,000 Unit Cost 18 10 23 NRV 16 11 20 Required: Calculate the total amount of write down to NRV. (3 marks) The budgeted sales of a company for the next three months are as follows: May June July 110,000 150,000 140,000 The sales are 30% cash and 70% credit. Collections of credit sales are expected to occur as follows: 65% in the month of sales and 30% in the month following the sales. The other 5% is estimated to be bad debts. Required: Prepare a schedule which shows expected cash receipts from sales for the month of July 2022. (4 marks) Suppose you are the lucky winner of a lottery. You are given the option of taking the prize money either as (1) 10 payments of 12,000 per year starting today, or (2) a lump sum of 100,000 paid today. Assume the interest rate is 6%, which option should you take? Support your answer with calculation