Question

A) Able Company accepted a national credit card for a $5,000 purchase. The cost of the...

A) Able Company accepted a national credit card for a $5,000 purchase. The cost of the goods sold is $3,000. The credit card company charges a 2% fee. What is the impact of this transaction on net operating income?

Increase by $2,000.
Increase by $1,960.
Increase by $4,900.
Increase by $1,900.

B) The maturity value of a $80,000, 8%, 60-day note receivable dated July 3 is

C) Bozemen Co., makes a credit card sale to a customer for $800. The credit card sale has a grace period of 30 days and then an interest charge of 1.6% per month is added to the balance. If the unpaid balance on the above sale is $350 at the end of the grace period, the interest charge is

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