A caterer has 20% cash sales. Half of the credit sales are paid by customers with credit cards and is reimbursed by the financial institutions in the month following the sale after first deducting a fee of 2 percent of gross credit card sales. The rest is invoiced with an equal amount collected in each of three months starting the month after the sales, net of 1.5% loss due to bad debts. If the caterer has sales of $48,000 in May, her first month of business, and $53,000 in June, how much cash will she receive in June?

Question

Quizplus · Accepted Answer

The Answer of A caterer has 20% cash sales. Half of the credit sales are paid by customers with credit cards and is reimbursed by the financial institutions in the month following the sale after first deducting a fee of 2 percent of gross credit card sales. The rest is invoiced with an equal amount collected in each of three months starting the month after the sales, net of 1.5% loss due to bad debts. If the caterer has sales of $48,000 in May, her first month of business, and $53,000 in June, how much cash will she receive in June?

A Caterer Has 20% Cash Sales