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Fusion Ltd sells goods on credit to Angel Inc. on 1 Jan 2024 amounting to R4 600 VAT inclusive (invoice price). The credit terms per the sales invoice are 5/20 n/30.

Fusion Ltd is a VAT vendor, and only deals with VAT vendors.

From past experience with Angel Inc they are NOT expected to pay within 20 days because Angel Inc has always paid Fusion Ltd on the last day of the month.

The journal on the Date of sales transaction 1 Jan 2024 is as follows:

Dr Account receivable (SoFP) XXXX

Cr VAT output (SoFP) XXXX

Cr Revenue - IFRS 15 (P/L) XXXX

Required:

What is the correct general journal entry with amounts on Date of payment if Angel Inc paid on 6 Jan 2024.

Dr Bank (SoFP) N$4 370; Dr Allowance for Settlement discount (SoFP) N$200; Dr VAT input (SoFP) N$30; Cr Account receivable (SoFP) N$4 600.

Dr Bank (SoFP) N$4 370; Dr Revenue - IFRS 15 (P/L) N$190; Dr VAT input (SoFP) N$40; Cr Account receivable (SoFP) N$4 600.

Dr Bank (SoFP) N$4 370; Dr Allowance for Settlement discount (SoFP) N$190; Dr VAT input (SoFP) N$40; Cr Account receivable (SoFP) N$4 600.

Dr Bank (SoFP) N$4 370; Dr Revenue - IFRS 15 (P/L) N$200; Dr VAT input (SoFP) N$30; Cr Account receivable (SoFP) N$4 600.

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