Yamkelwa Storm is a sole trader operating as Stormy Traders. Stormy Traders uses a consistent mark-up of 50% on the cost price of goods to calculate selling price. On 31 May 2019 the shop and most of the contents were destroyed by fire. The inventory salvaged was sold at cost price for R1 000. From an examination of Stormy's records and other information supplied to you, you ascertain the following: Ledger account balances at 31 May 2019: Accounts receivable Purchases Transport costs on goods purchased Transport costs on goods sold Expenses Sales Inventory (1 January 2019) R 21 800 45 700 3 900 2 300 8 500 78 750 18 250 33 000 1. 2. 3. 4. Non-current assets During March 2019 a shop assistant had misappropriated R750 from cash sale takings. He had failed to complete a cash sale docket at the time of sale. This fraud was discovered when the customer returned the goods to have a minor fault repaired. At the same time the assistant had also stolen goods costing R1 200. To disguise the inventory shortage the assistant had invoiced these goods to a fictitious debtor for R1 800. No adjustments have been made to correct the above, and nothing can be recovered in respect of any of these items. During two weeks in April 2019, a cut price sale was held. The normal selling price of goods was reduced by 10%. Sales during this period amounted to R8 100. Goods costing R300 were donated to a local welfare organisation on 16 April 2019. No entry had been made in respect of this transaction. On 31 May 2019 goods invoiced by a supplier for R4 500, which had been included in purchases, were awaiting collection. Transport costs of R200 on these goods had not been recorded in Stormy's books. REQUIRED: (a) (b) Prepare general journal entries (without narrations) to record the misappropriation of cash and theft of inventory by the shop assistant (Note 1. above). Calculate the cost of the inventory destroyed by the fire. Show clear workings.