Question

Concord Corporation accepted a national credit card for a $9300 purchase. The cost of the goods sold is $5300. The credit card company charges a 5% fee. What is the impact of this transaction on net operating income?

Answer 1

Answer: Increase by $3,735

Step-by-step 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

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