QUESTION 1 (45 MARKS: 54 MINUTES) Becky James owns a small retail business, Gold Rush. The business sells a variety of clothing. jewellery, and hair accessories. The financial year-end of Gold Rush is 31 March. You have been provided with the following information: Gold Rush Pre-Adjustment Trial Balance as at 31 March 2022: PPE: Furniture Accumulated depreciation: Furniture Inventory Trade receivables Allowance for doubtful debts Bank Capital Drawings Retained earnings Loan: Braun Bank DR CR 280 000 ? 79 000 158 000 67 000 250 000 15 000 4 000 88 000 ? Trade payables 122 000 Sales income 425 000 Cost of sales expense 263 000 Salaries and wages expense 55 000 Advertising expense 24 000 Rent expense 42 000 Bad debts expense 2 400 Interest expense ? Additional Information The following information has not yet been taken into account in the above trial balance: 1. On 31 March 2022, it was discovered that a cash customer had been incorrectly overcharged by R2 000 for goods purchased from the business during March 2022. The cost of sales expense had been correctly recorded (i.e., only the sales had been recorded incorrectly) It was agreed with the customer that a refund for the overcharge would be paid to the customer in April 2022. 2. A debtor, C Billows, who had been written off as a bad debt in the previous financial year, had managed to improve their financial situation. C Billows made a cash payment of R3 200 on 31 March 2022 in settlement of their debt. 3. On 31 March 2022, Gold Rush heard from the liquidator of N. Thwala, a debtor of the business who had gone insolvent. N Thwala had bought goods for R8 400 during the current year, of which 30% were for cash and the rest were on credit and are still unpaid. The liquidators informed Gold Rush that 20 cents for every Rand owing by N Thwala would be paid in May 2022. Gold Rush has decided to write off the remainder of the debt as bad.