Waec Model Questions Vol1 2017 Financial Accounting Question 19
Practice objective / multiple choice question 19 from the 2017 Waec Model Questions Vol1 Financial Accounting examination.
The trial balance of Gamma Enterprises shows total debits of ₦1,150,000 and total credits of ₦1,242,500. The following figures are known: - Sales: ₦800,000 - Cost of goods sold: ₦500,000 - Salaries expense: ₦80,000 - Rent expense: ₦30,000 - Interest expense: ₦10,000 - Tax is charged at 20% of profit before tax. - The profit after tax for the year is required to be ₦70,000. No entry for Bad Debts Expense has been recorded. Determine the amount of Bad Debts Expense that should be recorded so that the trial balance balances and the profit after tax is ₦70,000.
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About This Question
This is Waec Model Questions Vol1 2017 Financial Accounting Question 19. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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