QUESTION 1 (30 MARKS : 54 MINUTES) Ignore VAT Umlomo (Pty) Limited (Umlomo) is a company that imports nozzles (fitted to the front of a hose) for high pressure pumps and sells them into the local market. The main suppliers are in Botswana (Pula - currency) and Argentina (Peso - currency). The company offers a 2.5% settlement discount for accounts settled within 7 calendar days from invoice date. Settlement discounts are recorded at the net amount. The following inventory of nozzles was available on 31 March 2021: Detail Units Inventory on hand (Purchased 25 March 2021) Inventory on hand (Purchased 30 March 2021) 7 33 Cost at R170 each at R210 each 2 Relevant information and transactions during the month of April 2021: On 1 April 2021, an order was placed with Botswana Nozzles for 200 nozzles for 150 Pula each. The nozzles were purchased on credit, delivered FOB "Free on Board" to Sir Seretse Khama International Airport in Botswana on 6 April 2021 and was uplifted there to land at East London Airport on 7 April 2021. On 7 April 2021, the South African Revenue Services (SARS) charged refundable customs duties of R5 850 at the airport. The same day a courier charged R1 150 for the nozzles delivered to the store. All payments were made in cash. On 9 April 2021, 30 nozzles were sold for cash for R315 each, after a cash discount of 10% was given on the transaction On 12 April 2021, 20 nozzles were sold on credit to Monditso Limited for R340 each. On 19 April 2021, Monditso Limited paid their account after taking their discount. On 20 April 2021, 80 nozzles were sold for credit to TS Mali for R360 each. On 23 April 2021, 5 nozzles were returned that were sold on 9 April 2021 and a cash refund of R1 575 was made. The nozzles were damaged and discarded. On 25 April 2021, Botswana Nozzles account was settled by EFT, (Electronic Funds Transfer). On 30 April 2021, the inventory count of 110 nozzles was found to be correct. It was also established that the account of TS Mali remained unpaid and would be paid late. A competitor entered the market getting inventory from Argentina where the exchange rate was 6.70 Peso to the Rand. The effect of this is that the normal selling price of nozzles dropped to R250 each. The normal selling expenses related to sales amount to R60 per nozzle. Additional information. Umlomo uses the perpetual inventory system and inventory movements are accounted for using the FIFO (first-in, first-out) cost formulae. Exchange rates: 1 April 2021 R1.33: Pula 6 April 2021 R1.30: Pula 7 April 2021 R1.35: Pula 25 April 2021 R1.38: Pula QUESTION 1 (CONTINUED) REQUIRED: Prepare the journal entries necessary to account for the inventory transactions in the general journal of the Umlomo (Pty) Limited for April 2021. Dates are required, narrations are not required. Round off totals to the closest rand. (30 Marks)