Cassell Company accepted credit cards in payment for 6900 of

Cassell Company accepted credit cards in payment for $6,900 of services performed during March 2014. The credit card company charged Cassell a 2.30 percent service fee. The credit card company paid Cassell as soon as it received the invoices. Cost of goods sold amounted to $4,250. Required Based on this information alone, what is the amount of net income earned during the month of March? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Solution

Net income earned during the month of March = Service revenue-Cost of goods sold-Service charge = 6900-4250-(6900*2.3%)= $2491.30