Use the following information to answer the given question $\begin{array}{c|c} & N \ \hline \text{Debtors (1/1/98)} & 2,000 \ \text{Debtors (31/12/98)} & 1,250 \ \text{Cash received from debtors} & 6,000 \ \text{Bad debt written off} & 750 \ \text{Discount allowed} & 500 \ \text{Discount received} & 125\end{array}$Assuming a gross profit of N3,000, what was the net profit?

Question

Use the following information to answer the given question $\begin{array}{c|c} &amp; N \ \hline \text{Debtors (1/1/98)} &amp; 2,000 \ \text{Debtors (31/12/98)} &amp; 1,250 \ \text{Cash received from debtors} &amp; 6,000 \ \text{Bad debt written off} &amp; 750 \ \text{Discount allowed} &amp; 500 \ \text{Discount received} &amp; 125\end{array}$Assuming a gross profit of N3,000, what was the net profit?

Lessonnotes Admin · Accepted Answer

The answer is D. N1,875.