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WAEC Financial Accounting 1999 Question 5

Question 5

Incomplete Records

Debtors (1/1/98): N2,000
Debtors (31/12/98): N1,250
Cash received from Debtors: N6,000
Bad debts written off: N750
Discount allowed: N500
Discount received: N125
What was the amount of sales for the year?

  1. A.N8,500
  2. B.N6,625
  3. C.N6,500
  4. D.N6,000.
Show the answer and explanation

Answer: C (N6,500)

Explanation

Sales = closing debtors 1,250 + cash 6,000 + bad debts 750 + discount 500 − opening debtors 2,000 = N6,500.