Which of the following represents the total balance of debtors before adjustment?

Halal Limited with three departments has a total of N7,200,000 as net debtors for the year ended 31/12/97.
The company’s policy provides for 15% bad debt annually. Which of the following represents the total balance of debtors before adjustment?

A. N6,120,000
B. N6,120,300
C. N8,280,000
D. 8,820,000

Correct Answer:

Option A – N6,120,000