Debtors ₦2,000 to ₦6,000, cash received ₦10,000, discount allowed ₦500: what are the sales for the year?

Use the debtors (sales ledger) control account. Debtors go up when goods are sold on credit. They go down when customers pay cash and when they are given a discount.

Opening debtors + sales − cash received − discount allowed = closing debtors. So ₦2,000 + sales − ₦10,000 − ₦500 = ₦6,000.

Sales = ₦6,000 + ₦10,000 + ₦500 − ₦2,000 = ₦14,500. The stock figures play no part here.

The tempting ₦14,000 leaves out the discount allowed. A discount also clears part of what customers owe, so it must be counted.