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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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