(begin{array}{c|c} & text{Dept A} & text{Dept B} \ hline & N & \ hline text{Sales} & 250 000 & 150,000 \ hline text{Purchases} & 500,000 & 250 000 \ hline text{Discount received} & 24 000 & \ hline text{Discount allowed} & 15 000 & &
end{array})
Determine the discount allowed by Department A
end{array})
Determine the discount allowed by Department A
-
A.
₦5,000 -
B.
₦9,375 -
C.
₦5,625 -
D.
₦8,000
Correct Answer: Option B
Explanation
To determine the discount allowed by Department A, the percentage of sales by Department A need to be calculated
Dep A 250,000
Dep B (frac{150,000}{400,000})
% of Dep A = (frac{250,000}{400000}) X 100
= 62.5%
∴ Discount allowed in Dep A = (frac{62.5}{100}) x 250,000
= ₦ 9,375
= ₦ 9,375