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Revival Shirt Company sells on credit and manages its own receivables. Average experience for the past three years has been the following EEB (Click the

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Revival Shirt Company sells on credit and manages its own receivables. Average experience for the past three years has been the following EEB (Click the ioon to view the data.) Requirement (Click the icon to view more information.) 1. Should Revival Shirt Company start seling on bankcards? Show the computations of net income under the present plan and under the bankcard plan. (ignore estimated sales returns and refunds for thi exercise.) Assume the same cost of goods sold percentage as the company has experienced in the past. For amounts with a $0 balance make sure to enter "or in the appropriate cell. In the "Expected with Bankcard assume the company is switching completely from receivables to bankcard sales and therefore, there will be no expenses to receivables) Without Expected with Bankcards Bankcards Sales Cost of goods sold Uncollectible-account expense Bankcard discount expense .. Other expenses ...| Net income Decision: Revival Shirt company start seling on bankcards Enter any number in the edit fields and then continue to the next question. rds? Show the computations of net income under the present plan and under the bankcard plan. (Igr mpapv has exneriencednthe nast Eoramounts with a les t !ance makesure to enter "O" in the ap Data Table Ex Cash Credit Total Sales. s Uncollectible-account expense.. Other expenses.. 16,000 16,000 92,500 92,500 185,000 Print Done on bankcards. s? Show the computations of net income under the present plan and under the bankcard plan. pany has experienced in the past. For amounts with a $0 balance, make sure to enter "O" in the More Info John Richie, the owner, is considering whether to accept bankcards (VISA, MasterCard). Richie expects total sales to increase by 10% but cash sales to remain unchanged. If Richie switches to bankcards, the business can save $9,000 on other expenses, but VISA and MasterCard charge 3% on bankcard sales. Richie figures that the increase in sales will be due to the increased volume of bankcard sales. Print Done bankcards

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