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WAEC Financial Accounting 1996 Question 26

Question 26

Bad Debts and Provisions

The total debtors account of a trading concern is N13,000. Out of this 2 percent is irrecoverable; 5 percent of the balance is unlikely to be collected.
Bad debt is

  1. A.N910
  2. B.N650
  3. C.N637
  4. D.N377
  5. E.N260.
Show the answer and explanation

Answer: E (N260.)

Explanation

Bad debt = 2% × N13,000 = N260.