JAMB Accounting 2007 Objective — Question 33

Question 33 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

Use the information below to answer questions 33 and 34. Debtors 20,000; Provision bad debts 10%; Provision for discount on debtors 5%. Determine the amount provided for discount allowed on debtors.

A. #1,000
B. 3,000
C. 900Correct
D. 1,500

Explanation

Provision for bad debts = 10% x 20,000 = 2,000. Net debtors = 18,000. Discount provision = 5% x 18,000 = #900.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2007 Objective More Accounting past papers