Question

Completed 4.2 hours of service work for cash customer Hank Ajax.

Hank also purchased a new Starlight Trailer. The selling price for the trailer is $1,485.00. Be sure to include the sales tax on the trailer and the service work. The full amount due, is paid with a bank credit card. The bank will charge Granite Bay Jet Ski, Inc., a credit card fee (1-4%) which will be shown on the bank statement and recorded at the end of the month. Invoice Number: G4017.

ADDITIONAL INFORMATION:

Sales tax of 8% is charged on all sales and labor.

Credit card fees of 1% to 4% will be assessed by banks. Bank credit card fees will be accounted for at the end of the month from information received on the bank statement.

Labor Charges will be billed to customers at a rate of $65.00 per hour. Charges should be rounded to nearest cent.

Merchandise listed on the sales invoice:   

Stock Number :AL800

Item Quantity STARLIGHT TRAILER :  1 UNIT

Net Cost Per Unit $1,188.00

Answer 1

Please refer the working attached below.

Net profit on sale is $570

Credit card charges are added monthly basis hence it is reduced from overall profits.