What is the amount for sundry debtors after provision?

Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled N800.
A provision of 2% was made for discount and 5% provision for bad and doubtful debts.

A. N760 000
B. N744800
C. N744 000
D. N784 000

Correct Answer:

Option A – N760 000

Explanation

5% x 800
5/100 x 800 = 40

800 – 40 = 760