Answer to Question #204555 in Accounting for tetelo

Question

The following information was obtained from the records of SA Suppliers at 31 December 2019. SA Suppliers is not registered as a VAT vendor and uses the perpetual inventory system.

 

 

1.Inventory sold for cash--R5 000

2.Inventory purchased on credit--R2 000

3.Inventory purchased for cash--R700

4.Depreciation on motor vehicles --R1 100

5.Office furniture purchased on credit---R3 000

6.Proceeds from the sale of redundant furniture--R500

7.Inventory previously purchased on credit, returned to supplier---R390

Which of the above transactions will be recorded in the cash receipts journal of SA Suppliers at 31 December 2019?

 A. (4), (5) and (6)

 B. (1), (3), (4) and (5)

C. (1) and (6)

 D. (3) and (4)

 

Answer 1

B. (1), (3), (4) and (5)