Concept explainers
1.
To find: The total sales revenue is expected to be paid in cash.
2.
To find: The number of customer transactions the company expect in January.
3.
To find: The total sales revenue expected to be paid with credit cards.
4.
To find: The number of customer transactions to be paid for by customers using credit cards.
5.
To find: The amount the restaurant expect to incur in credit card transaction fees.
6.
The total sales revenue is expected to be paid with debit cards.
7.
To Find: The number of customer transactions will be paid for by customers using debit cards.
8.
To find: The amount which the restaurant expect to incur in debit card transaction fees.
9.
To find: The money that will be deposited in the restaurant’s bank account during the month of January related to credit and debit card sales.
10.
The total amount of money that the restaurant expects to deposit in its bank account during the month of January from cash, credit card, and debit card sales.
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Managerial Accounting (5th Edition)
- The Red Fusion, a local Thai restaurant, expects sales to be $770,000 in January. Its average customer restaurant bill is $55. Only 40% of the restaurant bills are paid with cash; 30% 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: $0.50 per transaction + 3% of the amount charged Debit cards: $0.40 per transaction + 2% of the amount charged Read the requirements. Requirement 1. How much of the total sales revenue is expected to be paid in cash? $ 308,000. The total sales revenue expected to be paid in cash is Requirement 2. How many customer transactions does the company expect in January? 14,000 (...) In January, the number of transactions the company expects is Requirement 3. How much of the total sales revenue is expected to be paid with credit cards? The total sales revenue expected to be paid with credit cards is $ 231,000 Requirement 4. How many customer transactions will be paid…arrow_forward(Learning Objectives 1, 2: Apply GAAP for proper revenue recognition; accountfor sales allowances) Niagara Jewelry sells to retailers who then resell the products. Niagaradoes not offer sales discounts for early payment; it asks that customers pay in full within15 days or at the point of sale with a credit card. The company had the following selectedtransactions during July:July 2 Sold $150,000 of merchandise to Lakeside Jewels on account.Sold $12,000 of merchandise to Superior Crystals, which paid by credit card. Thecredit card company charges Niagara a fee of 2% on credit card sales.July 17Shining Stones noticed that some of the merchandise received was damaged, so itreturned $17,000 worth of merchandise to Niagara.July 30July 3July 16July 19Shining Stones paid the balance of what it owed for the purchase on July 17.Lakeside Jewels paid the balance of what it owed for the purchase on July 2.Sold $185,000 of merchandise to Shining Stones on account.Requirements1. Journalize Niagara’s…arrow_forwardYeopay 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…arrow_forward
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- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning