Question

A company accepts a credit card payments for services rendered. the credit card company charges a 3% handling fee. if the company's monthly credit card sales totals $132,067, what will the company record as a credit card expense for the month?

Answer 1

The company will record a credit card expense of $3,962.01 for the month, which is calculated by multiplying the monthly credit card sales total of $132,067 by the 3% handling fee.

Step-by-step explanation:

The company's monthly credit card sales total $132,067. To calculate the credit card expense for the month, due to the handling fee charged by the credit card company, we can use the formula:

Expense = Sales Total x Handling Fee Percentage

Substituting the given values, we get:

Expense = $132,067 x 0.03

Expense = $3,962.01

Therefore, the company will record a credit card expense of $3,962.01 for that month.