New provision for bad debts to stand at 5% of debtors. In the balance sheet, the net figures for the profit is?

By: |Published on: Aug 17|Categories: Accounting WAEC| 0 comments

Use the following to answer the given question

N
Provision for bad debts 1,000Cr
Bad debts 500Dr
debtors 50,000Dr
Additional bad debts to be written off 500

 

A. N47,025
B. N46,550
C. N45,600
D. N45,500
E. N43,225

Correct Answer:

Option D – N45,500

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