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JAMB Principles of Accounts 2004 Question 20

Question 20

Incomplete Records

The beginning and ending accounts receivable balances were ₦20,000 and ₦30,000 respectively. The collection from customers during the period was ₦70,000. What was the total sale on account?

  1. A.₦20,000
  2. B.₦60,000
  3. C.₦80,000
  4. D.₦120,000
Show the answer and explanation

Answer: C (₦80,000)

Explanation

Credit sales = cash collected + closing debtors − opening debtors = 70,000 + 30,000 − 20,000 = ₦80,000.