₦Debtors opening4000Debtors closing1500Cash received from debtors8500Bad debts written off350Discount allowed500Discount received1000 ₦ Debtors opening 4000...

Answer Details

If the gross profit is ₦5,000, then the net profit is calculated below;
The item that will appear in the profit and loss account are;
Bad debt written off ₦350, Discount allowed ₦500 and Discount received ₦1,000

$\begin{array}{ccc}\text{Gross Profit}& 5000& \\ \text{Discount Received}& 1000& 6000\\ \text{Expenses}& & \\ \text{Bad debt.}& 350& \\ \text{Discout Allowed}& 500& 850\\ \text{Net profit}& & 5,150\end{array}$

Net profit is the profit made after all the expenses incurred are deducted from the gross profit
₦5150 is the net profit calculated i.e bad debt 350 &nplus; discount allowed 500 &nplus; net profit 5,150 less gross profit 5,000 + discount received 1,000