WAEC Financial Accounting 1999 Question 6

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
Assuming a gross profit of N3,000, what was the net profit?

1. A.N3,375
2. B.N2,625
3. C.N2,000
4. D.N1,875