Practice Activity 6.15 Recovery of a debt written off in a previous accounting period, implications

The facts are the same as practice activity 6.14.

Required:

i. Advise the seller on what to do now that Joy's relative has paid the debt that Sopuruchukwu Enterprises wrote off on 31 December 2019.

ii. In Sopuruchukwu Enterprises' books, prepare the accounts to post your advice to the seller. Assume that Joy is the only customer of Sopuruchukwu Enterprises.

iii. Also, prepare extracts of the statement of profit or loss and statement of financial position as at 31 December 2020.