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The owner took trading inventory for personal use. The selling price was R4 800 (VAT is not applicable). The mark up is 50% on cost price. The transaction has not been processed. The periodic inventory method is utilised by Central Perk Furniture Store. 3. The telephone and fax invoice for March 2020 of R2 430.15 has not yet been paid. 4. A debtor, C. Bing who owed R6 500 has been declared insolvent. The business received 35 cents on the Rand from the insolvent estate. This transaction must still be recorded. The remaining balance may be written off as irrecoverable. 5. The allowance for credit losses must be adjusted to the amount of R1 600. 6. Insurance expenses for April 2020 have been prepaid. The monthly premium has remained the same for the past two years.
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