Question 2 Emilio and Ren Santos own Splish Brothers nc.. From its inception, Splish Brothers Inc. has sold merchandise on either a cash or credit basis, but no credit cards have been accepted. During the past several months, the Santos have begun to question their credit-sales policies. First, they have lost sone sles because of their refusal to accept credit cards. Second, representatives af two metropalitan banks have convinced them to accept their national credit cards. One bank, Business National Bank, has stated that (1) its credit card fee is 4% and (2) it pays the retailer g6 cents on each $1 of sales within 3 days of receiving the credit card billings. The Santos dedide that they should deternine the cost af carrying their own credit sales. From the accounting records af the past 3 years, they accumulate these data: 2017 2016 Net credit sales Collaction agency fees for slaw-paying customers Salary of part-time accounts recevable clerk 549,00D SG42,0O0 $433,aaa 1,540 4,570 3,07D 4,670 2,550 4,670 Credit and collection xpenses as a percentage of net credit sales are as follows: uncollectible accounts 1.6%, billing and mailing costs 0.5%, and edit investigation fee on new customers D.2%. Emilio and Rene e so determine that the average accounts receivable balance outstanding during the year is 5% o net credit sales. The Santos estimate that they could earn dn verege of 10% annually on cash invested n other business opportunities. Answer the rollowing Prepare a tabulation ror each year showing total credit and collection expenses in dollars and as a percentage or net credit sales. (Round percentage answers to 1 decimal place, e.g. 15.2%.) 2017 2015 Net credit sale Credit and collection expenses Collection agency Salary of accounts receivable derk Uncollectible ccounts Billing and mailing costs Credit investigation fees fees Total Total expenses as a percentage of net credit sales Determine the net credit nd collection expenses in dollars and as percentage of sales after immaterial.) (Round percentages to 1 decimal place, eg, 15.2%.) the revenu not earned fra other investment opportunities. (Note: The income last Dn the cash held by the bank far 3 days is considered to be 2017 Net credit and collection expense Net expenses as a percentage of net sales