QUESTION 1 The following transactions relate to a sales ledger for the year ended 30 April 2021: The debit balance on the Sales Ledger Control account at 30 April 2021 was $53 806. The total of balances contained within the sales ledger at 30 April 2021 was $56 706. Investigations revealed the following: 1. Irrecoverable (Bad) debts written off during the year totalling $2 500 had not been entered in the control account. 2. A cheque received from Bobby for $240 had been posted mistakenly to the credit side of the sales account in the nominal ledger instead of Bobby's personal account. 3. Debts settled by set-off against supplier's account totalled $840. This had been omitted from the control account. 4. A cheque of $4 000 from Green had been dishonoured by the bank. No record had been made for this in the control account, although Green's personal account in the sales ledger had been adjusted. 5. A sum of $200 discount allowed had not been recorded in Jenny's personal account. The correct entry has been made in the cash book. 6. Goods to the value of $1 600 had been returned by a customer but no record of this had been made. 7. The total sales shown in the sales journal for March 2021 had been recorded as $5 700 instead of $7 500. Required: a) Prepare an adjusted Sales Ledger Control account for the year ended 30 April 2021 [7] b) Prepare a statement reconciling the original total of the sales ledger balance with the adjusted control account balance [5] c) Give three reasons why control accounts are prepared [3] 2