JAMB Accounting 2020 Objective — Question 29

Question 29 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

29. Debtors is N4000. The new net profit after making 5% provision for doubtful debt is

A. A. N360
B. B. N3,600Correct
C. C. N4,400
D. D. N3,000

Explanation

The cost of new provision for bad debt is 5% x N4000 = N800. New profit = N4,000 - N800 = N3,200.

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