Gce Model Questions Vol1 2020 Financial Accounting Question 49

Practice objective / multiple choice question 49 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 49 GCE_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

On 15 June, the business received \(\text{₦}25{,}000\) cash from a customer who previously owed \(\text{₦}30{,}000\). The remaining balance was written off as bad debt. Record the journal entry for this transaction.

Answer Options

A. Debit Cash ₦20,000; Debit Bad Debt Expense ₦10,000; Credit Accounts Receivable ₦30,000
B. Debit Cash ₦25,000; Debit Bad Debt Expense ₦5,000; Credit Accounts Receivable ₦25,000
C. Debit Cash ₦30,000; Debit Bad Debt Expense ₦0; Credit Accounts Receivable ₦30,000
Correct Answer D. Debit Cash ₦25,000; Debit Bad Debt Expense ₦5,000; Credit Accounts Receivable ₦30,000
Correct Answer
D
Correct Option:
Debit Cash ₦25,000; Debit Bad Debt Expense ₦5,000; Credit Accounts Receivable ₦30,000

About This Question

This is Gce Model Questions Vol1 2020 Financial Accounting Question 49. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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