To determine the net profit from the given information, we need to consider the gross profit and the various expenses that affect the net profit. Here’s a step-by-step breakdown of how to arrive at the correct answer. Step 1: Understand the Components

1. Gross Profit: This is the profit a company makes after deducting the costs associated with making and selling its products. In this case, the gross profit is given as ₦5,000.
2. Expenses: We need to account for the expenses that will reduce the gross profit to arrive at the net profit. The relevant expenses from the information provided are:
3. Bad Debts Written Off: ₦350
4. Discount Allowed: ₦500

Step 2: Calculate Total Expenses To find the total expenses that will be deducted from the gross profit, we add the bad debts written off and the discount allowed: [ \text{Total Expenses} = \text{Bad Debts Written Off} + \text{Discount Allowed} ] [ \text{Total Expenses} = ₦350 + ₦500 = ₦850 ] Step 3: Calculate Net Profit Now, we can calculate the net profit by subtracting the total expenses from the gross profit: [ \text{Net Profit} = \text{Gross Profit} - \text{Total Expenses} ] [ \text{Net Profit} = ₦5,000 - ₦850 = ₦4,150 ] Step 4: Review the Options Now, let’s compare our calculated net profit with the provided options: - A. ₦4,350 - B. ₦6,000 - C. ₦5,150 - D. ₦4,000 Step 5: Identify the Correct Answer From our calculation, we found the net profit to be ₦4,150. However, this value does not match any of the options provided. This indicates a potential oversight in the interpretation of the problem or the options given. Step 6: Analyze the Options Let’s analyze the options: - A. ₦4,350: This is close to our calculated net profit but does not match. - B. ₦6,000: This is too high and does not make sense given the expenses. - C. ₦5,150: This is higher than our calculated net profit. - D. ₦4,000: This is lower than our calculated net profit. Conclusion Given the calculations, the correct net profit based on the provided data is ₦4,150, which does not match any of the options. However, if we consider that the question might have intended to include other factors or misrepresented the options, we would need to clarify the context or check for any additional information. Revision Summary

• Gross Profit is the profit after deducting the cost of goods sold.
• Net Profit is calculated by subtracting total expenses (bad debts and discounts) from gross profit.
• Always ensure to account for all relevant expenses when calculating net profit.
• If the calculated net profit does not match the options, verify the problem statement and options for accuracy.