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.

Waec Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 19 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

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.

Answer Options

A. 100,000
B. 95,000
Correct Answer C. 92,500
D. 85,000
Correct Answer
C
Correct Option:
92,500

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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