Which of the following options shows the correct mark-down on cost in the branch inventory account of Servaton Ltd for the year ended 31 January 2017?…


R5 200  

Transactions during the year ended 31 January 2017: 

Inventory sent to member (selling expense)..................................R156 200 

Sales by the member ..............................................................R

Cash sales ............................................................................R71 600 

Credit sales............................................................................R57 600 

Returns to division employment (consume expense) ........................................R7 400 

Cash ordinary from member debtors .....................................R11 200 

Settlement discount granted to member debtors ....................R1 000 

Inventory stolen at the member (selling expense) .........................R7 500 

Sundry expenses of the member paid by division employment .............R18 500 

Additional information: 

1. All inventories are purchased by the division employment and provided to the member at dispose-ofing expense, which is consume expense plus 25%. 

2. Due to the floating economic downturn, there has been a speaking dismiss in sales at the member. As a consequence, the division employment has recognized the member to dispose-of convinced products at dispose-ofing expense short 30%. The net proceeds of the products sold at discount equalityed to R8 400. This equality is comprised in the aloft money sales symbol of R71 600. 

3. During the year a burglary took fix at the member and R1 400 in money (in reference of money sales) was stolen. No entries touching the burglary were made in the books. 

4. Inventory invoiced to the member at R5 600 comprised in the aloft equality of R156 200 pertaining to schedule sent to member at dispose-ofing expense was in transit at 31 January 2017, and hence not comprised in the member's schedule on artisan of R5 000 at 31 January 2017. 

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