| ₦ | |
| Debtors opening | 4000 |
| Debtors closing | 1500 |
| Cash received from debtors | 8500 |
| Bad debts written off | 350 |
| Discount allowed | 500 |
| Discount received | 1000 |
What is the amount of sales for the year?
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Correct Answer: Option A
Explanation:
The amount of sales for the year is calculated using the formula: Opening Debtors + Sales - Cash received from debtors - Closing Debtors + Bad debts written off + Discount allowed - Discount received. Plugging in the given values, we get: 4000 + Sales - 8500 - 1500 + 350 + 500 - 1000 = Sales. Solving for Sales, we get Sales = 6850.
The amount of sales for the year is calculated using the formula: Opening Debtors + Sales - Cash received from debtors - Closing Debtors + Bad debts written off + Discount allowed - Discount received. Plugging in the given values, we get: 4000 + Sales - 8500 - 1500 + 350 + 500 - 1000 = Sales. Solving for Sales, we get Sales = 6850.