Paul Smith is opening a plumbing supply store in Universal City.He plans to sell plumbing parts and materials to both wholesale and retail customers.Because contractors (wholesale customers) prefer to charge parts and materials and pay at the end of the month, Paul expects he will have to offer charge accounts.He plans to offer charge accounts to the wholesale customers only and to require retail customers to pay with cash or credit cards.Paul wondered what expenses his business would incur relative to the charge sales and the credit card sales.

1)What issues will paul need to consider if he allows wholesale customers to buy plumbing suppplies on account?

2)What is the cost of accepting credit cards?