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Determine the amount provided for discount allowed on debtors?

Use the information below to answer question
Debtors……………………………N20
Provision for bad debts………………10%
Provision for discount on debtors……..5%
Determine the amount provided for discount allowed on debtors?
  • A.
    N1000
  • B.
    N3000
  • C.
    N900
  • D.
    N1500
Correct Answer: Option A
Explanation