Africa Traders, a registered VAT vendor, manufactures and sells face masks. The VAT rate is 15%. On 15 February 2021, Africa Traders issued a credit note to SA Traders, a registered VAT vendor, for face masks of R4 600 (VAT inclusive). These face masks were returned to Africa Traders by SA Traders and were previously purchased on credit. All goods are sold at a constant mark-up of 25% and Africa Traders uses the periodic inventory system. How will the above transaction be recorded in the applicable subsidiary journal of Africa Traders? Select one:a. Africa TradersSales Returns Journal – February 2021 SRJ02Doc no Day Details Fol VAT output Sales returns Trade receivables Cost of sales RRRR 15SA Traders 6004 0004 6003 200 b. Africa TradersPurchases Returns Journal – February 2021 PRJ02Doc no Day Details Fol VAT inputPurchases returns Trade payables RRR 15SA Traders 6004 0004 600 c. Africa TradersPurchases Returns Journal – February 2021 PRJ02Doc no Day Details Fol VAT input Inventory Trade payables RRR 15SA Traders 6004 0004 600 d. Africa TradersSales Returns Journal – February 2021 SRJ02Doc no Day Details Fol VAT output Sales returns Trade receivables RRR 15SA Traders 6004 0004 600

ANSWER Here in this case Africa traders sells mask to SA traders. On such a case Africa traders this…

Answered: Africa Traders, a registered VAT…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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Africa Traders, a registered VAT vendor, manufactures and sells face masks. The VAT rate is 15%. On 15 February 2021, Africa Traders issued a credit note to SA Traders, a registered VAT vendor, for face masks of R4 600 (VAT inclusive). These face masks were returned to Africa Traders by SA Traders and were previously purchased on credit. All goods are sold at a constant mark-up of 25% and Africa Traders uses the periodic inventory system.

How will the above transaction be recorded in the applicable subsidiary journal of Africa Traders?

Select one:

Africa Traders

Sales Returns Journal – February 2021 SRJ02

Doc no	Day	Details	Fol	VAT output	Sales returns	Trade receivables	Cost of sales
				R	R	R	R
	15	SA Traders		600	4 000	4 600	3 200

Africa Traders

Purchases Returns Journal – February 2021 PRJ02

Doc no	Day	Details	Fol	VAT input	Purchases returns	Trade payables

				R	R	R
	15	SA Traders		600	4 000	4 600

Africa Traders

Purchases Returns Journal – February 2021 PRJ02

Doc no	Day	Details	Fol	VAT input	Inventory	Trade payables

				R	R	R
	15	SA Traders		600	4 000	4 600

Africa Traders

Sales Returns Journal – February 2021 SRJ02

Doc no	Day	Details	Fol	VAT output	Sales returns	Trade receivables

				R	R	R
	15	SA Traders		600	4 000	4 600

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