What was the net profit for that year if a gross profit of N3650 was made?

Debtors on 1st January was N1,490 and sales for the year was N5,760. Cash received from debtors during the year was N5,410. Bad debt written off was N410. Discount allowed amounted to N320. What was the net profit for that year if a gross profit of N3650 was made?

A. N2,920
B. N3,240
C. N3,330
D. N5,340
E. N5,440

Correct Answer:

Option A – N2,920