\(\begin{array}{c|c} & \text{N} \\ \hline \text{Debtors opening} & 4000 \\ \hline \text{Debtors clsoing} & 1500 \\ \hline \text{Cash received from debtors} & 8500 \\ \hline \text{Bad debts written off} & 350 \\ \hline \text{Discount allowed} & 500 \\ \hline \text{Discount Received} & 1000\end{array}\) What is the amount of sales of sales for the year?
A. ₦3850 B. ₦6650 C. ₦1550 D. ₦6850
Correct Answer: 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.
