Question

Ace Credit Card Company agrees to transfer cash to Seller Company deposit of that company's credit card sales sales. If Seller Company deposits $57,300 credit eard statements is true?
A. Ace will receive $56,154 cash from Seller Company
B. Seller Company will receive cash $56,154 from Ace
C. Ace will receive $57,300 cash from Seller Company
D. Seller Company will receive $57,300 cash from Ace
E. Ace will pay Seller Company a $1,146 credit card fee

Answer 1

Answer:

The question is incomplete, below is a possible match of the complete question:

Ace Credit Card Company agrees to transfer cash to Seller Company immediately upon deposit of that company's credit card sales receipts. Ace charges a 2% fee for all credit card sales. If Seller Company deposits $57,300 credit card sales receipts, which of the following statements are true?

A. Ace will receive $56,154 cash from Seller Company

B. Seller Company will receive cash $56,154 from Ace

C. Ace will receive $57,300 cash from Seller Company

D. Seller Company will receive $57,300 cash from Ace

E. Ace will pay Seller Company a $1,146 credit card fee

The correct answer is:

Seller Company will receive cash $56,154 from Ace  (B)

Explanation:

Since Ace charges a 2% fee for all credit card sales, for a deposit of $57,300 by Seller company, the 2% service charge will be deducted, and to find how much cash seller company will receive, we will calculate the balance on the deposited amount after the 2% fee has been deducted. This is done as follows.

2% of $57,300 = 2/100 × 57,300

= 0.02 × 57,300 = $1,146

Therefore, balance after deduction:

= 57,300 - 1,146 = $56,154

Hence, seller company will receive a cash of $56,154 from Ace for the credit card sales.