The downtown bistro project sales solve this accounting questions The Downtown Bistro projects sales of $800,000 in March. Theaverage customer bill is $40. Payment methods are distributed asfollows: 30% cash, 65% credit cards, and 5% debit cards. Transaction.fees for card payments are: Credit cards: $0.45 per transaction + 2.5%of the amount charged Debit cards: $0.25 per transaction +0.08% ofthe amount chargedCalculate:a. Expected cash sales revenueb. Total number of customer transactions expectedc. Expected credit card sales revenued. Number of credit card transactions

Step 1: Definition of Key TermsCash Sales Revenue: The portion of total sales revenue that is…

Answered: The Downtown Bistro projects sales of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

See similar textbooks

Similar questions

Fred's Factory has credit sales of $747,500 and an average accounts receivable balance of $57,500. Fred factors his receivables throughout the year with his local bank at a 2% discount. What is the effective annual rate of this arrangement? Multiple Choice 27.88% 29.24% 28.67% 28.03% 30.04%
The Thai Noodle, a local Thai restaurant, expects sales to be $220,000 in January. Its average customer restaurant bill is $20. Only 20% of the restaurant bills are paid with cash; 50% are paid with credit cards and 30% with debit cards. The transaction fees charged by the credit and debit card issuers are as follows: Credit cards: $0.20 per transaction + 3% of the amount charged Debit cards: $0.30 per transaction + 1% of the amount charged Read the requirements. Requirement 1. How much of the total sales revenue is expected to be paid in cash? The total sales revenue expected to be paid in cash is Requirements 1. How much of the total sales revenue is expected to be paid in cash? 2. How many customer transactions does the company expect in January? 3. How much of the total sales revenue is expected to be paid with credit cards? 4. How many customer transactions will be paid for by customers using credit cards? 5. When budgeting for January's operating expenses, how much should the…
Historically, 60 percent of the customer bills at the Andrews’ Supper Club have been paid with cash or check, and 40 percent have been paid using either the Great American Bank Card or the United Merchants Card.Andrews pays a 4% fee with both cards. United Merchants makes an electronic funds transfer three days after the sales are transmitted.Use the Transaction Analysis Template to record the following:a. Sales for September 10 were as follows: Cash and checks $2,680 Great American Bank Card 1,000 United Merchants Card 600 $4,280 If the transaction affects the same Balance Sheet category, enter the larger amount in the first row and the smaller amount directly below (in the second row). Balance Sheet Income Statement Stockholders' Assets = Liabilities + Equity Revenues - Expenses = Net Income Answer Answer Answer Answer Answer Answer Answer Answer…
Yeopay Plumbing Supply accepts bank credit cards and offers established plumbers charge accounts with terms of 1/eom, n/45. Yeopay's experience is that 25% of its sales are for cash and bank credit cards. The remaining 75% are on credit. Of the cash sales, 40% pay cash and the remaining 60% pay with bank credit cards. Yeopay receives payments from the bank on credit card sales at the end of the day. However, Yeopay has to pay 3% for these services. An aging schedule for accounts receivable shows the following pattern on credit sales: 20% pay in the month of sale. 50% pay in the first month following the month of sale. 15% pay in the second month following the month of sale. 12% pay in the third month following the month of sale. 3% are never collected. All accounts not paid by the end of the second month following the month of sale are considered overdue and are subject to a 5% monthly late charge. Yeopay has prepared the following sales forecasts: June July August $ 78,000 116,000…
Kent Corner Shoppe is a local convenience store with the following information: October sales were $250,000. Sales are projected to go up by 12% in November and another 30% in December and then return to the October level in January. 20% of sales are made in cash, while the remaining 80% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 2% transaction fee and deposit the net amount (sales price less the transaction fee) in the store’s bank account daily. Kent Corner Shoppe’s gross profit is 25% of its sales revenue. For the next several months, the store wants to maintain an ending merchandise inventory equal to $15,000+15%$15,000+15% of the next month’s cost of goods sold. The September 30 inventory was $43,125. Expected monthly operating expenses include: Wages of store workers are $9,200 per month Utilities expense of $1,000 in November and $1,500 in December Property tax expense of $2,000 per month Property and liability…
A Mikey's sells $119,500 of its accounts receivable to factors at a 1% discount. The firm’s average collection period is one month. What is the dollar cost of the factoring service? Dollar-cost of the factoring service $_________ per month
Sweetens Cove, Incorporated, has weekly credit sales of $69400 and the average collection period is 23 days. What is the average accounts receivable figure?
Calculate the average daily balance and finance charge on the statement below. Note: Round your answers to the nearest cent. 30-day billing cycle 9/16 Billing date Previous balance $ 2,200 9/19 Payment $ 62 Credit 9/30 Charge: Home Depot 1,600 10/3 Payment 62 Credit 10/7 Cash advance 72 Finance charge is 1% on average daily balance. Average daily balance Finance charge
Kantorovich Company normally takes 25 days to pay for its average daily credit purchases of $1,900. It has average daily sales of $2,900, and collects accounts in 20 days. What is its net credit position? Multiple Choice O $10,500 O $11,500 ($12,500) O ($10,500)
Calculate the average daily balance and finance charge on the statement below. Note: Round your answers to the nearest cent. 9/16 9/19 9/30 10/3 10/7 Billing date Payment Charge: Home Depot Payment Cash advance 30-day billing cycle Previous balance Finance charge is 1.5% on average daily balance. Average daily balance Finance charge $60 Credit 1,500 60 Credit 70 $ 2,000
During the year, the following sales transactions occur. There is a charge of 3% on all credit card transactions and a 1% charge on all debit card transactions. Total cash sales = $380,000 Total check sales = $230,000 Total credit card sales = $480,000 Total debit card sales = $210,000 calculate the amount recorded as cash receipts from these transactions
Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) 30-day billing cycle Previous balance $ 2,600 Billing date Payment Charge: Home Depot Payment Cash advance 9/16 9/19 66 cr. 1,800 66 cr. 9/30 10/3 10/7 76 Finance charge is 1.5% on average daily balance. es Average daily balance Finance charge %24

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS