Neco 2023 Commerce Question 5
Practice essay / theory question 5 from the 2023 Neco Commerce examination. This question covers Retail Trade, Stock turnover, Cash discount policy, Inventory management .
A retailer operates a small shop that deals in electronic accessories. During the month the retailer purchased goods worth ₦500,000 on credit. The goods are sold at a markup of 30 % on cost. Cash sales amounted to ₦260,000 and credit sales to ₦340,000. The average credit period granted to customers is 45 days and the retailer offers a 5 % discount for cash payment made within 10 days. Assume that 40 % of the credit sales were paid within the discount period. At the end of the month the closing inventory was ₦120,000.
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This is Neco 2023 Commerce Question 5. It is one of the essay questions from the 2023 Neco Commerce examination.
The question covers Retail Trade, Stock turnover, Cash discount policy, Inventory management .
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