Question

Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is assessed. The second credit card that Levine accepts is the Continental Card. Continental assesses a 2.5% charge on sales for using its card.

Answer 1

Continental Card

Step-by-step explanation:

This question doesn’t seems to be complete however I’ll try to answer it to the best of my knowledge.

The first thing to understand is the Perpetual Inventory System. In the Perpetual inventory method for inventory accounting, sale or purchase of inventory is recorded immediately through a computerized POS (Point-of-Sale) or Enterprise Asset Management software. Perpetual inventory gives a detailed view of changes in inventory with immediate reporting of the amount of inventory in stock and accurately reflects the level of goods on hand.

When charging for Inventory the customers must prefer to use the Continental Card as the service charges are 1.5% less compared to Suntrust Bank Card however one must not forget to consider the quality of service being provided by both Banks as well.