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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 expected to pay within a week because Angel Inc has always paid Fusion Ltd within a week.

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

Dr Bank (SoFP) N$4 370; Dr Allowance for Settlement discount (SoFP) N$190; Cr Revenue - IFRS 15 (P/L) N$190; Cr Account receivable (SoFP) N$4 370.

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.

100%

Dr Bank (SoFP) N$4 600; Dr Allowance for Settlement discount (SoFP) N$200; Cr Revenue - IFRS 15 (P/L) N$200; Cr Account receivable (SoFP) N$4 600.

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