Prepare the correct Creditors Control account for May 2020 after taking into account the additional information, errors and omissions. Balance the account Balance b/d June R112 000 Additional information, errors and omissions 1. The debit balance in the account of a creditor, R300, must be transferred to the Debtors ledger. 2. An invoice for goods purchased from Super Suppliers was entered in the Purchases journal as R6 400 instead of R4 600.3. A credit purchase of equipment from Minto Enterprises was not recorded, R5 000. 4. A credit note received from HD Wholesalers for trading goods returned was not recorded in the Purchases Returns Journal, R1 000. 5. Stardom Traders, a creditor, charged Oyster Traders interest on overdue account, R50
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Prepare the correct Creditors Control account for May 2020 after taking into account the additional
information, errors and omissions. Balance the account
Balance b/d June R112 000
Additional information, errors and omissions
1. The debit balance in the account of a creditor, R300, must be transferred to the Debtors ledger.
2. An invoice for goods purchased from Super Suppliers was entered in the Purchases journal as R6
400 instead of R4 600.3. A credit purchase of equipment from Minto Enterprises was not recorded, R5 000.
4. A credit note received from HD Wholesalers for trading goods returned was not recorded in the
Purchases Returns Journal, R1 000.
5. Stardom Traders, a creditor, charged Oyster Traders interest on overdue account, R50
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