JAMB Accounts Principles of Accounts 2023 Paper

Concept:Use the debtors control account to find the credit sales for the year.Discount received is ignored because it affects creditors, not debtors.Explanation:Opening debtors = $\text{₦}4,000$Closing debtors = $\text{₦}1,500$Cash received from debtors = $\text{₦}8,500$Bad debts written off = $\text{₦}350$Discount allowed = $\text{₦}500$The debtors account equation is:Opening debtors + Sales = Cash received + Bad debts + Discount allowed + Closing debtorsMake Sales the subject:Sales = Cash received + Bad debts + Discount allowed + Closing debtors - Opening debtorsSales = $8,500 + 350 + 500 + 1,500 - 4,000$Sales = $\text{₦}6,850$Answer:The amount of sales for the year is $\text{₦}6,850$.Correct option: A.