JAMB Accounting 2019 Objective — Question 9
Question 9 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2019 Objective paper, with the correct answer and a full explanation.
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Papilo Limited with three departments has a total of ₦7,200,000 as net debtors for the year ended 3/12/2017. The company's policy provides for 15% bad debts annually. Which of the following represents the total balance of debtors before adjustment?
- A. ₦612,000
- B. ₦6,120,300
- C. ₦8,280,000
- D. ₦8,820,000Correct
Explanation
Gross debtors = (15%×₦7,200,000) + ₦7,200,000 = ₦1,080,000 + ₦7,200,000 = ₦8,820,000.
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