Why would royal carpet cleaning accept credit cards instead

Reference no: EM13598318

Royal carpet cleaning provided $90,000 of services during 2011, its first year of operations. All customers paid for the services with major credit cards. Royal submitted the credit card receipts to the credit card company immediately. The credit card company paid Royal cash in the amount of face value less a 3 percent service charge.

Why would Royal carpet cleaning accept credit cards instead of providing credit directly to its customers? In other words, why would Royal be willing to pay 3 percent of sales to have the credit card company handle its sales on account?

Reference no: EM13598318

Questions Cloud

Stock splits versus stock dividends assume that you own 600 : stock splits versus stock dividends. assume that you own 600 shares of common stock of a company that you have been

P9-9 statement and note disclosure lcm and purchase : p9-9 statement and note disclosure lcm and purchase commitment garth brooks specialty company a division of fresh

What is the highest acceptable manufacturing cost schopp : schopp company makes swimsuits and sells these suits directly to retailers. although schopp has a variety of suits it

Manufactures belt buckles in a single -step production : manufactures belt buckles in a single -step production process. the following information is available for june 2010

Why would royal carpet cleaning accept credit cards instead : royal carpet cleaning provided 90000 of services during 2011 its first year of operations. all customers paid for the

For each of the following situations use the weighted : for each of the following situations use the weighted average method to determine the equivalent units of production

Debra works on the assembly line of a manufacturing company : debra works on the assembly line of a manufacturing company where she installs a component part for one of the companys

How much gain or income will ben recognize on his : beth and ben are equal partners in the bb partnership formed on june 1 of the current year ben contributed land that he

From the e-activity evaluate the synergies gained for the : use the internet to a recent business combination that occurred. be prepared to discuss. from the e-activity evaluate

User Account

All Pages