QUESTION 2 [25] Senzo Ngidi has a trading business, Senzo's Wholesale Coolers. He sells only one type of air-conditioning unit to a select group of installers who cannot buy directly from the manufacturer, Ice Cool Units, who is based in Jozini while Senzo operates in only Durban and its surrounding areas. The following pre-adjustment trial balance was taken from the accounting records at financial year end 31 December 2017: Debit Credit R R Vehicles at cost.. 560 000 187 500 Accumulated depreciation: Vehicles Inventory - 1 January 2017 90 000 Trade debtors 110 000 6 000 Allowance for credit losses (Provision for bad debts) Bank balance 34 000 7% Long term loan from Frozen Bank 90 000 Trade creditor 87 500 338 300 Capital - Senzo Drawings Sales 60 000 1 425 000 Sales returns 19 000 Purchases 650 000 Purchases allowances 30 000 Commission income 22 000 24 000 Bank charges Credit losses (Bad debts) 18 000 Franchise fee 84 000 82 000 Electricity and water Interest on loan 69 300 Rent expense 104 000 Settlement discounts granted 6 000 Salaries 276 000 2 186 300 2 186 300 Additional information: 1. Inventory of air-conditioning units at 31 December 2017 was valued at R210 000. 2. A debtor's account of R1 000 must be recorded as ir-recoverable. The allowance for credit losses must be increased by R2 000. 3. Commission income of R2 700 has been earned but not yet received nor recorded. 4. The long term loan was entered into on 1 January 2016 at a fixed interest rate of 7% per year for a fixed period of five (5) years. Interest for the current year needs to be brought up to date. 5. Rent of R8 000 for the month of January 2018 has already been paid and is included int the rent expense shown in the above trial balance. 6. The December 2017 electricity and water account of R7 700 was received and paid on 5 January 2018. This account is yet to be included in the above records. 7. Vehicles must be depreciated on the fixed instalment method. Vehicles have an estimated useful life of 8 years. The vehicles have a residual value of R60 000 Required: Prepare the statement of comprehensive income for the year ended 31 December 2017 for Senzo's Wholesale Coolers. [25]