Question 3 (Marks: 40) Steven owns and runs a store called Zodiac General Dealer. He allows goods to be sold on credit. Zodiac's year-end is 28 February. Steven went over all information pertaining to debtors to find out why the Debtors Control balance was not the same as the total of the Debtors List. He discovered the following: 1. Invoice 209 for R4 270 made out to B Baker was entered into the account of C Baker in error. 2. The Debtors Allowances column in the Debtors Allowances Journal was added incorrectly as R21 790. The correct amount was R24 790. 3. An invoice made out to Mr Asher was incorrectly recorded as R16 840 in the Debtors Journal. The invoice was for R16 480. The incorrect amount was also posted to the Debtors ledger. 4. Interest of R270 should have been added to Miss Capricorn's account. The bookkeeper had forgotten to do this and had not made any entries for this. 5. Connor Davis paid R4 950 after receiving a 10% settlement discount. These transactions were correctly recorded in the cashbook receipts and general journal respectively. The bookkeeper posted the general journal entries to the general ledger, but not to the individual account of Connor Davis in the debtors ledger. 6. On the 25 February 2023 Zodiac received R8 300 from Michaela Walsh. Michaela Walsh's account was previously written off as a bad debt in December 2022. The receipt now received was entered into the Debtors Control column in the Cashbook receipts. The total of the debtors control column was posted to the debtors control general ledger account. 7. The Debtors control balance on 28th February 2023: R42 640 8. The Debtors List Balance on 28th February 2023: R48 490 Zodiac sent the following statement of account to a debtor, Antares Stores: ZODIAC GENERAL DEALERS TO: Antares Stores DATE: 28 February 2023 STATEMENT NO: 2/2023 DATE TRANSACTIONS DR CR BALANCE 1/11/2022 Balance 15 700 10/11/2022 Invoice 16 16 680 32 380 2/12/2022 Invoice 28 12 560 44 940 3/12/2022 Credit note 12 1230 43 710 4/1/2023 Invoice 46 9780 53 490 5/1/2023 EFT 9291 44 199 Discount 489 43 710 31/1/2023 Interest 118 43 828 19/2/2023 Invoice 65 28/2/2023 Interest TERMS: 15 620 59 448 647.60 60 095.60 5% discount granted if paid within 30 days of statement date. Debt must be paid within 60 days of statement date. Interest charged at 2% per month on balances 90 days overdue. AGE ANALYSIS 90 DAYS 32 380 60 DAYS 11 330 30 DAYS CURRENT 118 16 267.60 Q.3.3 Reconcile the debtors control account to the debtor's list by making the corrections and adjustment for the items listed 2 to 6 above. Enter the adjustment correction amount in the appropriate column in the table below. Total the columns as marks will be awarded to the totals: DEBTORS CONTROL DEBTORS LIST Incorrect balance on 28 February 2. 3. 4. 5. 6. TOTAL Q.3.4 In your own words explain what you understand by a debtors age analysis. (11) (3)