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