WAEC Accounting 2020 Paper

Concept:Credit sales are found by preparing the sales ledger control account. Payments, discounts, bad debts and returns inwards all appear on the credit side and reduce the amount owed by customers.Explanation:First, total the credit side items of the sales ledger control account:Cheque received from customers $= \mathrm{N}24{,}000$Discount allowed $= \mathrm{N}2{,}000$Bad debts $= \mathrm{N}1{,}000$Returns inwards $= \mathrm{N}500$Total credit entries $= \mathrm{N}24{,}000 + \mathrm{N}2{,}000 + \mathrm{N}1{,}000 + \mathrm{N}500 = \mathrm{N}27{,}500$The opening sales ledger balance is $\mathrm{N}2{,}000$ on the debit side.So, credit sales are the balancing figure:$$\text{Credit sales} = \mathrm{N}27{,}500 - \mathrm{N}2{,}000 = \mathrm{N}25{,}500$$Answer:Credit sales $= \mathrm{N}25{,}500$Correct option: C. $\mathrm{N}25{,}500$