Pretty Pink Beauty Supply accepts? Discover® cards from its customers. Discover

Question

Pretty Pink Beauty Supply accepts? Discover® cards from its customers. Discover charges Pretty Pink 2.4?% of sales for its services. During the? 2009-2010 fiscal? year, Pretty Pink?'s customers used Discover cards to purchase $ 60 comma 000 worth of merchandise. How much did Pretty Pink show as sales on the income statement for the year ended June? 30, 2010? How much cash did Pretty Pink actually receive from these? sales? How much did Pretty Pink show as sales on the income statement for the year ended June? 30, 2010? Pretty Pink Beauty Supply reported ?$ nothing as sales on the income statement for the year ended June? 30, 2010. How much cash did Pretty Pink actually receive from these? sales? Begin by selecting the formula used to calculate the cash received. Then enter the amounts to calculate the cash received. - = Cash received - =

Explanation / Answer

A)Sales to be reported on Income statement for the year ended june 30 2010 = 60,000   

B)Cash received from sales = Amount of sales [1-charges]

                       60000 [1- .024]

                       60000* .976

                       $ 58560

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