TRADE RECEIVABLES CONTROL DR 20.1 CR R 20.1 Dec 15 670 Dec 31 1 Balance (Correct) bld Bank (total: trade receivables column) Settlement discount 45 495 Sales Returns (credit sales) 2220 Bank (R/D Cheques) 425 Credit purchases 33 801 Cash purchases 1 008 Settlement discount 275 31 granted Credit Sales 685 48 165 3 980 150 Drawings Purchases received. Bank (Total: trade payables column) returns 2 131 70 587 (credit purchases) Balance cld 112 296 112 296 Balance bld 70587 20.2 Jan 1 Additional information: . 1. An inexperienced bookkeeper prepared the trade receivables control account. 2. In addition to the errors made in the trade receivables control account above, an investigation revealed the following: The total of the trade receivables balances as per the list of trade receivables on 31 December 20.1 amounted to R16 060. An amount of R115, which has been written off as credit losses, has erroneously been added to the credit sales amount of R48 165. This entry has been posted correctly to the applicable account in the trade receivables ledger. The sales journal was overcast by R420. Credit sales of R170 was posted correctly to the sales account and the trade receivables control account in the general ledger but was not posted to the specific debtor's account in the trade receivables ledger Credit note number 003 for R70 was recorded correctly in the sales returns journal but posted to the wrong side of the personal account of the debtor in the trade receivables ledger . . Financial Accounting 1 Page 6 of 8 The trade receivables column in the cash receipts journal includes an amount of R195 being a cash settlement discount received from a creditor. The purchases journal was under-cast by R718. An account of R1 603 for freight on credit sales was received from Quick Transport . The cost of the freight must still be accounted for in the accounting records. The R/D cheque of R425 was the cheque of a debtor in payment of his account. The cheque was returned because the debtor had insufficient funds to cover the cheque. On 1 December 20.1, the balance of the trade payables control account amounted to R8 340. 4.1 (23) Prepare the correct, properly balanced trade receivables and trade payables control accounts for Smart Boutique for December 20.1. 4.2 Prepare the reconciliation of the total of the list of trade receivables balances with the final balance of the trade receivables control account as calculated in question (4) 4.1 above