Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled #800,000. A provision for bad and doubtful debts. Find the amount for sundry debtors af...
Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled #800,000. A provision for bad and doubtful debts.
Find the amount for sundry debtors after provision.
Answer Details
The amount for sundry debtors after provision can be calculated as follows:
Sundry debtors after provision = Total sundry debtors - Provision for bad and doubtful debts
From the given information, we know that the total amount of sundry debtors is #800,000. We also know that there is a provision for bad and doubtful debts, but the amount of the provision is not provided. Without knowing the amount of the provision, we cannot calculate the exact amount for sundry debtors after provision.
However, we can eliminate some answer options based on logic. If the provision for bad and doubtful debts is, for example, #40,000, then the amount for sundry debtors after provision would be #760,000 (#800,000 - #40,000). Therefore, (#760,000) is a possible answer.
Similarly, if the provision for bad and doubtful debts is #56,000, then the amount for sundry debtors after provision would be #744,000 (#800,000 - #56,000). Therefore, (#744,000) is also a possible answer.
We cannot determine the exact answer without knowing the amount of the provision for bad and doubtful debts.