Ted's Graduation Store sells graduation supplies to students through the college bookstore. The bank charges Ted's Graduation Store 3.25% on the total credit card sales each day to settle the credit card transactions

The college bookstore reported that consumers purchased $420 in credit card purchases. The managerial accountant needs to update the sales budget, the operating expenses budget, and the cash collections budget to account for the credit sales. What amount should the managerial accountant use to complete the sales budget, the operating expenses budget, and the cash collections budget? In which month should the managerial accountant show this data? What should the managerial accountant consider when updating the master budget?
What will be an ideal response?

The managerial accountant shows each transaction in the month of the sale to update the sales budget and the operating expenses budget; and, the managerial accountant updates the operating expenses budget in the month of collection. When updating the master budget, the managerial accountant considers: (a) the percent of sales that consumers make using debit and credit cards; (b) the different transaction fees the bank charges the company to settle the debit and credit transactions; and, (c) the amount of time it takes between the sale of goods and the deposit from the bank.
Explanation:
Transaction fee: $420 × 3.25% = $13.65
$420 - $13.65 = $406.35
Sales Budget: $420
Operating Expenses Budget: $13.65
Cash Collections Budget: $406.35