W E R SLock S D F G H Fn M K Question 1 (20) Sam Sandy, a resident of the Republic, sells and repairs watches from a shop she leases in a local shopping centre. She is a sole proprietor and is registered for value-added tax on the invoice basis. An analysis of the receipts and accruals and expenditure for her two-month tax period ending 30 September 2020 is set out below. Unless otherwise stated, all amounts are inclusive of value-added tax when applicable. She makes solely taxable supplies. Receipts and accruals Sales of watches Repairs of watches Interest Expenditure Bad debts (note 1) Bank charges Depreciation (note 2) Insurance premiums (note 3) Fuel Printing and stationery Purchases (note 4) Salaries Rentals (note 5) 80 400 30 100 5 400 15 400 970 31 540 2415 1740 1 587 130 100 54 740 15 870 Notes 1. Bad debts of R13 225 written off by Sam Sandy, comprising the following: R8 700 owing by one of her long-standing customers, from a credit sale. This customer has since emigrated and she has been unable to trace her. R6 700 was lent by her to an employee, who left town without repaying the loan. 2. Depreciation (for the two-month tax period) is charged for the following assets owned by Sam Sandy Manufacturing equipment that was purchased by her in a previous tax R120 400 period for R276 000 (R240 000 plus value-added tax of R36 000) En