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 D ate 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.

Question

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  D ate 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.

Answer

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.

Answer

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.

Answer

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.

Answer

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

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Fusion Ltd sells goods on credit to Angel Inc. on 1 Jan 2024 amounting to R4 60...

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