JAMB Accounts Principles of Accounts 2010 Paper

Concept:Credit sales are calculated by applying the given percentage to the cash received from debtors.Explanation:From the information provided, credit sales are equal to $160\%$ of the cash received from debtors.Cash received from debtors is N280,000.So, the value of credit sales is:$$160\% \times 280{,}000$$Convert $160\%$ to a decimal:$$160\% = \frac{160}{100} = 1.6$$Now calculate:$$1.6 \times 280{,}000 = 448{,}000$$Hence, the value of credit sales is N448,000.Answer:Credit sales = N448,000.Therefore, the correct option is B.