Neco 2019 Financial Accounting Question 50

Practice objective / multiple choice question 50 from the 2019 Neco Financial Accounting examination.

Neco 2019 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 50 NECO • 2019 • FINANCIAL_ACCOUNTING • objective

The trade receivables control account shows an opening debit balance of \(N150,000\). During the year the following entries were posted:\n\n- Credit sales: \(N500,000\)\n- Cash received from debtors (net of discount): \(N323,400\)\n- Sales returns (credit): \(N20,000\)\n- Bad debts written off: \(N15,000\)\n- Discount allowed on early payment: 2% of the cash receipts (i.e., discount is 2% of cash before discount).\n\nAt year‑end the control account balance is a debit of \(N285,000\). Determine the amount of discount allowed during the year.

Answer Options

Correct Answer A. N6,600
B. N10,000
C. N5,400
D. N6,468
Correct Answer
A
Correct Option:
N6,600

About This Question

This is Neco 2019 Financial Accounting Question 50. It is one of the objective questions from the 2019 Neco Financial Accounting examination.

Difficulty level: Medium .

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