SECTION A Answer ALL questions Which of the following is likely to require an accrual adjustment? (a) Insurance which has been paid in advance for the year (b) A sales invoice Electricity that has been used, but not yet paid for (d) A cash purchase Jake sold goods to Emily for 11,520, including VAT of 20%. He allowed Emily 30 days to make payment for the goods. What are the correct entries to record the transaction in the accounting records? (a) (b) (c) (d) DR Receivables 11,520; CR Sales 9,600; CR Output tax 1,920 DR Receivables 13,824; CR Sales 11,520; CR Output tax 2,304 DR Bank 11,520; CR Sales 9,600; CR Output tax 1,920 DR Receivables 13,824; CR Bank 11,520; CR Output tax 2,304 3. An item of inventory was purchased some time ago at a cost of 25,450, Work costing 9,200 will be required before the item can be sold for 36,000. To replace the same item of inventory now would cost 31,450. How should the inventory be valued in the accounts