Thames Appliances Limited is a distributor of domestic garden appliances throughout New Zealand. It is registered under the Companies Act 1993 with contributed equity of 6,000,000 ordinary shares. Set out below is a list of balances extracted from the accounts of the company as at financial year end date 31 December 2012: Debit Credit $ $ Bank 30,000 Land at fair value 6,000,000 Buildings at cost 3,000,000 Accumulated Depreciation - Building 800,000 Plant & Equipment at cost 2,400,000 Accumulated Depreciation - Plant & Equipment 500,000 Vehicles at cost 500,000 Accumulated Depreciation - Vehicles 170,000 Contributed Equity 8,230,000 Treasury Stock 280,000 Purchases 17,300,000 Directors' Fees 370,000 Provision for Doubtful Debts 30,000 Audit Fees 40,000 Donation 35,000 Accounts Payable 1,000,000 Accounts Receivable 2,020,000 Dividend Income 200,000 Dividends paid 300,000 Interest Expense 75,000 Rental Income 240,000 Inventory as at 1 January 2012 250,000 Long Term Loan 1,500,000 Other Expenses 430,000 Retained Earnings-1 January 2012 320,000 Revaluation Reserve - 1 January 2012 1,000,000 Investment in Shares at cost 2,400,000 Sales 23,200,000 Salaries and Wages 1,820,000 37.220,000 37,220,000 The following additional information is relevant for preparing financial statements for the year ended 31 December 2012: . Provision for doubtful debts is to be made at a rate of 2% on the balance of accounts