PROBLEM: KATE'S CARDS SERIAL PR a continuation of the Serial Problem: Kate's Cards from Chapters 1 through :) (Note: This is a con SP8. Kate's Card The video takes the shows how to design production of package (hardw package to Kate is age from Kan Kate has put a lot of time and effort into card. She has documented the entire process in Streamlining the process to design and produce a greet- ideo takes the viewer through the step-by-step process of selecting na ocess in a QuickTime video she produced on her iMac. us how to design and produce the card. Kate has met many people who w y-step process of selecting hardware and software, and duction of greeting cards, but are overwhelmed by the process. Kate has deci ate has met many people who would like to get into the Lage (hardware, software, and video tutorialto aspiring card producers. The cost nelmed by the process. Kate has decided to sell the entire ge to Kate is $4,500 and she plans to mark it up by $500 and sell it for D- John Stevens, an individual Kate met recently at a greeting card conference, would Com Kate. Unfortunately, John does not have this much cash and would like to have cently at a greeting card conference, would like to buy the pack- Kate believes that many of her customers will not be able to pay cash and, therefore, find some way to provide financing. One options not be able to pay cash and, therefore, she will need to option she is exploring is to accept credit cards. She learned that the credit card provider charges a 2.5 percent fee and provides immedi Tcent fee and provides immediate cash upon receiving the sales receipts. Kate would like you to answer the following questions: What are the advantages and disadvantages of offering credit? 2. What precautions should she take before offering credit to people like John? 3 If Kate grants credit to John, the terms will be 2/10. n/30. Assuming the payment is made during the 10-day discount period, what would be the journal entry to record the sale and then the subsequent payment? 4. If instead of paying early, John pays in 25 days, what would be the journal entry to record the payment? 5. Rather than providing the financing directly, assume that Kate decides to allow the use of credit cards. Further, assume that during the month there is $15,000 worth of credit card sales. Provide the journal entry to record the sales, along with the associated credit card fee. The cost of the goods sold total $13,500. PROBLEM: KATE'S CARDS SERIAL PR a continuation of the Serial Problem: Kate's Cards from Chapters 1 through :) (Note: This is a con SP8. Kate's Card The video takes the shows how to design production of package (hardw package to Kate is age from Kan Kate has put a lot of time and effort into card. She has documented the entire process in Streamlining the process to design and produce a greet- ideo takes the viewer through the step-by-step process of selecting na ocess in a QuickTime video she produced on her iMac. us how to design and produce the card. Kate has met many people who w y-step process of selecting hardware and software, and duction of greeting cards, but are overwhelmed by the process. Kate has deci ate has met many people who would like to get into the Lage (hardware, software, and video tutorialto aspiring card producers. The cost nelmed by the process. Kate has decided to sell the entire ge to Kate is $4,500 and she plans to mark it up by $500 and sell it for D- John Stevens, an individual Kate met recently at a greeting card conference, would Com Kate. Unfortunately, John does not have this much cash and would like to have cently at a greeting card conference, would like to buy the pack- Kate believes that many of her customers will not be able to pay cash and, therefore, find some way to provide financing. One options not be able to pay cash and, therefore, she will need to option she is exploring is to accept credit cards. She learned that the credit card provider charges a 2.5 percent fee and provides immedi Tcent fee and provides immediate cash upon receiving the sales receipts. Kate would like you to answer the following questions: What are the advantages and disadvantages of offering credit? 2. What precautions should she take before offering credit to people like John? 3 If Kate grants credit to John, the terms will be 2/10. n/30. Assuming the payment is made during the 10-day discount period, what would be the journal entry to record the sale and then the subsequent payment? 4. If instead of paying early, John pays in 25 days, what would be the journal entry to record the payment? 5. Rather than providing the financing directly, assume that Kate decides to allow the use of credit cards. Further, assume that during the month there is $15,000 worth of credit card sales. Provide the journal entry to record the sales, along with the associated credit card fee. The cost of the goods sold total $13,500