To determine the amount of sales for the year, we need to analyze the information provided about debtors, cash received, bad debts, and discounts. Here’s a step-by-step breakdown of how to calculate the sales: Step 1: Understand the Components

1. Debtors Opening: This is the amount owed to the business at the beginning of the year, which is ₦4,000.
2. Debtors Closing: This is the amount owed to the business at the end of the year, which is ₦1,500.
3. Cash Received from Debtors: This is the total cash collected from customers during the year, which is ₦8,500.
4. Bad Debts Written Off: This is the amount that is deemed uncollectible and is written off, which is ₦350.
5. Discount Allowed: This is the discount given to customers, which is ₦500.
6. Discount Received: This is the discount received from suppliers, which is ₦1,000 (not directly relevant for calculating sales).

Step 2: Calculate the Total Debtors Movement To find the total sales, we can use the following formula: [ \text{Sales} = \text{Cash Received} + \text{Closing Debtors} - \text{Opening Debtors} + \text{Bad Debts} + \text{Discount Allowed} ] Step 3: Plug in the Values Now, we can substitute the values into the formula:

1. Cash Received: ₦8,500
2. Closing Debtors: ₦1,500
3. Opening Debtors: ₦4,000
4. Bad Debts: ₦350
5. Discount Allowed: ₦500

Now, we can rearrange the formula to isolate sales: [ \text{Sales} = \text{Cash Received} + \text{Closing Debtors} - \text{Opening Debtors} + \text{Bad Debts} + \text{Discount Allowed} ] Step 4: Calculate Sales Substituting the values: [ \text{Sales} = 8500 + 1500 - 4000 + 350 + 500 ] Calculating step-by-step:

1. Cash Received + Closing Debtors: [ 8500 + 1500 = 10000 ]
2. Subtract Opening Debtors: [ 10000 - 4000 = 6000 ]
3. Add Bad Debts: [ 6000 + 350 = 6350 ]
4. Add Discount Allowed: [ 6350 + 500 = 6850 ]

Final Answer Thus, the total sales for the year is ₦6,850. Explanation of Other Options

• Option A: ₦3,850: This amount does not account for the cash received and the adjustments for bad debts and discounts correctly.
• Option B: ₦6,650: This amount is close but does not include the full adjustments for bad debts and discounts.
• Option C: ₦1,550: This amount is far too low and does not reflect any of the cash received or the opening and closing balances correctly.
• Option D: ₦6,850: This is the correct answer as it accurately reflects the total sales after considering all relevant factors.

Revision Summary

• Sales Calculation: Use the formula that incorporates cash received, opening and closing debtors, bad debts, and discounts.
• Debtors Movement: Understand how opening and closing debtors affect the sales figure.
• Adjustments: Always consider bad debts and discounts when calculating net sales.
• Final Check: Ensure all components are included in the calculation to avoid errors.

This thorough approach ensures a clear understanding of how to calculate sales in financial accounting.