Waec Model Questions Vol1 2017 Financial Accounting Question 5

Practice objective / multiple choice question 5 from the 2017 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

The Sales Ledger Control Account of ABC Traders for the month of March shows the following (amounts in Naira): Opening balance (debit).............. 120,000 Credit sales during the month........ 480,000 Cash received from debtors........... 350,000 Sales returns (credit)............... 20,000 Bad debts written off................ 10,000 No other entries were posted. Determine the closing balance of the Sales Ledger Control Account and compute the average collection period for March, assuming the month has 31 days. (Average collection period = (Closing balance ÷ Credit sales) × 31 days)

Answer Options

A. Closing balance: 230000; Average collection period: 14.9 days
B. Closing balance: 200000; Average collection period: 12.9 days
Correct Answer C. Closing balance: 220000; Average collection period: 14.2 days
D. Closing balance: 210000; Average collection period: 13.6 days
Correct Answer
C
Correct Option:
Closing balance: 220000; Average collection period: 14.2 days

About This Question

This is Waec Model Questions Vol1 2017 Financial Accounting Question 5. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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