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Rzqust [24]
3 years ago
13

Concord Corporation accepted a national credit card for a $9300 purchase. The cost of the goods sold is $5300. The credit card c

ompany charges a 5% fee. What is the impact of this transaction on net operating income?
Business
1 answer:
Burka [1]3 years ago
7 0

Answer: Increase by $3,735

Explanation:

Since they accepted the Credit Card for a $9,300 purchase it counts towards Revenue.

The Credit card payment would be,

= 5,300* 0.05

= $265

Calculating the Net Income we have,

= Revenue - Cost of Goods Sold - Credit card Expense

= 9,300 - 5,300 - 265

=$3,735

Net Income INCREASED by $3,735

If you need any clarification do react or comment.

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