Question

A company had the following sales transactions: Total debit card sales = $240,000. Total credit card...

A company had the following sales transactions:

  1. Total debit card sales = $240,000.
  2. Total credit card sales = $430,000.
  3. Total cash sales = $820,000.
  4. Total check sales = $110,000.

There is a charge of 3% on all credit card transactions. Calculate total sales revenue recorded for the year.


Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Total sales revenue to be recorded for the year would be $1,600,000.


Explanation

Sales revenue is the total amount of sales done in a period. This sales revenue includes all type of sales either in cash or credit.

Sales revenue is calculated by considering all types of sales, either it was credit card sales or debit card sales, cash sales or check sales.
So, The company had the following sales transactions:
Total debit card sales = $240,000.
Total credit card sales = $430,000.
Total cash sales = $820,000.
Total check sales = $110,000.

Total Sales = $1,600,000.

Note : There is a charge of 3% on all credit card transactions. But this service charge on credit card transactions would not be considered while calculating the total sales revenue.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory...
Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Sold $22,000 of merchandise, that cost $16,600, on MasterCard credit cards. MasterCard charges a 5% fee. Sold $5,200 of merchandise, that cost $3,100, on an assortment of bank credit cards. These cards charge a 4% fee.
Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory...
Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Sold $37,000 of merchandise, which cost $28,600, on Mastercard credit cards. Mastercard charges a 5% fee. Sold $6,700 of merchandise, which cost $3,850, on an assortment of bank credit cards. These cards charge a 4% fee. Sold $6,700 of merchandise on an assortment of bank credit cards. These cards charge a 4% fee. Enter journal entry.
At Sandhill Company, the following errors were discovered after the transactions had been journalized and posted....
At Sandhill Company, the following errors were discovered after the transactions had been journalized and posted. 1. A collection on account from a customer for $930 was recorded as a debit to Cash $930 and a credit to Service Revenue $930. 2. The purchase of store supplies on account for $1,580 was recorded as a debit to Supplies $1,190 and a credit to Accounts Payable $1,190. Prepare the correcting entries. (Credit account titles are automatically indented when amount is entered....
Purrfect Pets, Inc., had sales revenue of $1,718,380 during 2011. The company had credit card discounts...
Purrfect Pets, Inc., had sales revenue of $1,718,380 during 2011. The company had credit card discounts of $16,180 and sales returns of $3,500. The balance in accounts receivable on December 31, 2010 was $102,600 and on December 31, 2011 it was $127,800. Calculate the receivables turnover ratio and days to collect measure for 2011   Receivables turnover ratio   Days to collect
Miles Company had the following select receivable transactions. 2019 11/1 Loaned $24,000 cash to N. Jones...
Miles Company had the following select receivable transactions. 2019 11/1 Loaned $24,000 cash to N. Jones on a 12-month, 8% note. 12/1 Made Miles Company credit card sales totaling $10,500. (There were no balances prior to December 1.) 12/15 Made Visa credit card sales totaling $14,800 (service charge fee 2%). 12/30 Collected $4,400 on Miles Company credit card sales. 12/31 Added finance charges of 1% to Miles Company credit card balance. 12/31 Accrued interest on N. Jones note. 2020 11/1...
Complete T accounts for the transactions. Total the T accounts and add them to the trial...
Complete T accounts for the transactions. Total the T accounts and add them to the trial balance. Use the trial balance to make sure the accounts are balanced. On 1/3/xx there is an interest charge made for $1.35. On 5/3/xx fuel costing $38.00 is purchased using cash. On 6/3/xx there is a Visa sale for $2,999.00. On 7/3/xx stationery (toner) costing $247.00 is purchased using cash. On 11/3/xx there is a Visa sale for $2,759.00. On 12/3/xx fuel costing $36.50...
A retailer that makes credit card sales: Select one: Absorbs any losses on uncollectible credit card...
A retailer that makes credit card sales: Select one: Absorbs any losses on uncollectible credit card accounts Records such sales as a credit to Cash or Accounts Receivable, a debit to Credit Card Fees Expense, and a credit to Sales Revenue Is charged a fee ranging from 1% to 5% of the amount of each credit card sale On which financial statement and at what amount are accounts receivable reported? Select one: Income statement at the amount written off Balance...
At Westglow Company, the following errors were discovered after the transactions had been journalized and posted....
At Westglow Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the necessary correcting entry for each of the following. a. A collection on account of $500 was debited to Cash $500 and credited to Service Revenue $500. b. The purchase of supplies on account for $1,250 was recorded as a debit to Supplies for $1,550 and a credit to Accounts Payable for $1,550. PLEASE EXPLAIN IN DETAIL.
In 20X1, Judie Co. had total sales of $250,000, of which 75% were on credit. During...
In 20X1, Judie Co. had total sales of $250,000, of which 75% were on credit. During the year, $175,000 cash was collected on credit sales. The beginning balance in Accounts Receivable (on January 1 of Year 1) was $30,000. The beginning balance in the Allowance for Doubtful Accounts (on January 1 of Year 1) was $10,000. The amount of accounts written off as uncollectible during the year was $17,000. -- Management uses the percentage of credit sales method and estimates...
Although more than 81% of total restaurant sales are paid by card (either credit or debit),...
Although more than 81% of total restaurant sales are paid by card (either credit or debit), some customers still prefer to pay with either cash or by using personal checks. DF SS MS F P Groups 299.11 0.0010 Error 203 4258.94 20.98 The tables above shows an incomplete ANOVA Table with a (simulated randomization) p-value that researchers from Ohio State University constructed to determine if, based on a sample of 206 individuals, the mean amount that customers tip differs between...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT