Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

Exercise 7

Seven thousand customers of Merchants Retailing Company have credit cards issued by the department store chain. Charges to accounts are made by bar code input. After receiving monthly statements of account, customers remit by check to the company's central accounting office. Payment statistics on these accounts for July are:

Checks received on account are recorded in the company AIS by keyboard entry. Payments for even dollar amounts may be recorded by entering the dollar digits only. To save on keystrokes, data-entry personnel can use the key combination of CTRL-B to enter a payment for the full account balance and the combination of CTRL-M when the minimum payment is remitted. Other remittances require the entry of the dollar digits and the decimal followed by the cents digits.
Required:
a. Using July remittances as a representative month, how many keystrokes can be saved by changing to cents entry?
b. Assume that Lodestone Mining Company receives 5.321 payments a month based on invoiced amounts, of winch 1 percent are even amounts. How many keystrokes a month will be saved by converting from dollar entry to cents entry?