SteinTech Ltd$.$ is a prestigious company in South Africa specialising in the manufacturing of digital fitness and activity trackers such as smartwatches and fitness trackers. The company has a $30$ June financial year end. As the June $2024$ month end is swiftly approaching, the finance department is diligently preparing the trade receivables reconciliation.

The allowance for doubtful debts is adjusted to $4\%$ of the outstanding trade receivables balance at the end of every month.

Provided Balances:

$$ Net trade receivables on $31$ May $2024$: R$85320$

$$ Total column of the credit sales journal for June $2024$: R$50000$

$$ Trade receivables column in the cash receipts journal: R$40150$

$$ Credit sales returns for June $2024$: R$5800$

Additional information relating to June $2024$ that must still be accounted for:

$1.$ In mid$-$June $2024,$ it was resolved to write off the balance owed by M$.$ Merwe following her bankruptcy. Her outstanding balance from prior purchases amounted to R$4000.$

$2.$ On $28$ June $2024,$ an overpayment of R$500$ by B$.$ Villiers was identified during reconciliation.

$3.$ On $30$ June $2024,$ a goodwill gesture was received from M$.$ Merwe in the form of a post$-$dated cheque for R$2000,$ partially settling the amount that was previously written off.

$4.$ Upon comparison of the debtors' ledger and the general ledger, the following discrepancies were uncovered:

$$ A R$6500$ credit sale to D$.$ Grobler was inaccurately recorded under D$.$ Grootboom's name in the debtors' ledger.

$$ A R$800$ discount allowed was missing from the trade receivables in the general ledger, although correctly entered in the debtors' ledger.

$5.$ In light of the shifting economic landscape and patterns in payment behaviors, SteinTech Ltd$.$ reconsidered its financial strategies. Consequently, by $30$ June

$11$ HFAC$132-1-$Jan$-$Jun$2024-$SA$1-$LVN$-$V$3-20240130$

$2024,$ the allowance for doubtful debts was revised from $4\%$ to $5\%$ of the trade receivables balance.

REQUIRED:

$3\mathrm{.}1$ Briefly distinguish between net trade receivables and gross trade receivables.

$(2$ marks$)$

$3\mathrm{.}2$ Prepare the trade receivables account in the general ledger for the month of June $2024$ in the accounting records of SteinTech Ltd$.$

$-$ Round off to the nearest rand.

$-$ Close off $/$ carry forward the account to $1$ July $2024.$

$-$ No dates are required.