Regent Shirt Company sells on trade credit and manages its own receivables. Average experience for the past three years has been as follows: (Click icon to view information.) John Regent, the owner, is considering whether to accept credit cards (VISA, MasterCard). Regent currently does not accept credit cards. Regent expects total sales to increase by 7% but cash sales to remain unchanged. If Regent switches to accept credit cards, the business can save $8,000 on other expenses, but VISA and MasterCard charge 4.5% on credit card sales. Regent figures that the increase in sales will be due to the increased volume of credit card sales. Required Should Regent Shirt Company start accepting credit cards? Show the computations of net income under the present plan and under the credit card plan. Use the following table to compute Regent's net income without using credit cards and with using credit cards. (Round your answers to the nearest dollar.) Actual without Credit Cards Expected with Credit Cards Sales revenue Cost of goods sold. Bad debt expense Credit-card discount expense Other expenses........ Total expenses Net income.... Data table Sales... Cost of goods sold. Bad debt expense Other expenses... Cash $360,000 Trade Credit Total 170,000 $360,000 170,000 $720,000 340,000 - 8,000 8,000 80,000 80,000 160,000 Print Done