(begin{array}{c|c} & text{N} \ hline text{Debtors opening} & 4000 \ hline text{Debtors clsoing} & 1500 \ hline text{Cash received from debtors} & 8500 \ hline text{Bad debts written off} & 350 \ hline text{Discount allowed} & 500 \ hline text{Discount Received} & 1000end{array})
What is the amount of sales of sales for the year?
What is the amount of sales of sales for the year?
-
A.
₦3850 -
B.
₦6650 -
C.
₦1550 -
D.
₦6850
Correct Answer: Option D
Explanation
Dr Total Debtors Control A/c Cr
(begin{array}{c|c} text{bal b/f…..4,000} & text{Cash received….. 8,500} \ hline text{Credit sales…..6,850} & text{Bad debt written off…..50} \ hline
& text{Dr. Allowed…..500} \ hline & text{bal c/d…..1,500} \ hline 10,850 & 10,850 \ hline text{bal b/d…..1,500} & end{array})
D is correct ₦6850 as the sales for the year accordingly to the above calculations
The total debtors account is meant to control the transactions with customers whether in cash or credits and to know the remaining cash receivables from customers.