A business shows total debtors’ balances of ?400,000 in its ledger at the end of
FINANCIAL
POST UTME OAU
A business shows total debtors’ balances of ?400,000 in its ledger at the end of its financial year. A customer owing ?40,000 is bankrupt, and there is no possibility of getting the debt paid. A further 2% of the debt is considered doubtful. What debtor’s total will be included as a current asset in the balance sheet?
- A) ?400,000
- B) ?352,800
- C) ?352,000
- D) ?436,200
Correct Answer: C) ?352,000
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