1. Conde Inc. has projected sales to be: February, $20,000; March, $18,000; April, $16,000; May, $20,000; and June, $22,000. Conde has 30% cash sales and 70% sales on account. Accounts are collected 40% in the month following the sale and 60% collected the second month. Accounts receivable for May 31 would be

a. $ 6,160.

b. $13,300.

c. $14,000.

d. $20,720.

2. 

Mandeville Limited $($ML$)$ constructed a distillery on January $1,2021.$ The distillery is estimatedto have a useful life of $30$ years $($nil residual value$)$ from the date it was completed and ready tobe used. The distillery was operational on April $1,2021,$ but the entity actually commenced useof the distillery on June $30,2021.$ The distillery was self$-$constructed and ML incurred thefollowing costs: direct material, $$200$ million direct labour $$150$ million overheads $$250$ millionOf the total overheads incurred, $20\%$ represents cost overruns due to inefficiencies by the projectmanager and $$5,000,000$ represents general administrative overheads. To support withappropriate usage of the distillery, the entity incurred an additional $$20$million to train all theoperators to use the distillery. The costs incurred in constructing the asset are expected to increaseefficiencies and yield significant future economic benefits.Required:

a$)$ Determine the depreciation charge for the period ended December $31,2021.(2$marks$)$

b$)$ Determine the carrying amount of the asset as at December $31,2022.(4$marks$)$

c$)$ Differentiate between capital and revenue expenditure giving an example of each from thescenario above