Use the information below to answer question.Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sal...

Use the information below to answer question.Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sales of ₦19000 from the business tray and banked it.

The credit sales for the period would be?

Answer Details

Since Ezekiel recorded sales representing 95% cash and 5% credit, we can assume that the total sales for the period are 100%. Therefore, if the total cash sales recorded were ₦19000, we can find the total sales as follows: Total sales = Total cash sales / Percentage of cash sales Total sales = ₦19000 / 0.95 = ₦20000 Now, we know that the total sales are ₦20000, and that 95% of this amount represents cash sales, which is ₦19000. Therefore, we can find the credit sales by subtracting the cash sales from the total sales: Credit sales = Total sales - Cash sales Credit sales = ₦20000 - ₦19000 = ₦1000 So, the credit sales for the period would be ₦1000.