NECO Accounting 2007 Objective — Question 53
Question 53 of 60 from the National Examinations Council (NECO) Accounting 2007 Objective paper, with the correct answer and a full explanation.
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A businessman started trading on 1st June 1999. His total debtors were N50,000; a provision for doubtful debt of 10% was made. What is the amount of provision for doubtful debt as at 31st May 2000?
- A. N5,000
- B. N4,000
- C. N3,000
Explanation
10% x N50,000 = N5,000; the source key lists option D (N2,000), suggesting an adjustment was required beyond the initial provision calculation.
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