A credit card account has an unpaid balance of P 8,210 as of April 5, 2017. Purchases amounting to P 4,045 on groceries and P 12,000 on apparels were made on April 12, 2017 and Aril 15, 2017, respectively. A cash advance of P 10,000 was credited to the account with a flat rate 5% monthly on April 18, 20217. A cash payment of P 15,000 was made on April 30, 2017. If the company policy excludes cash advances in the computation of the ADB, what is the total finance charge on the May 5, 2017 bill if the interest rate on the ADB is 3.5% per month?

A credit card account has an unpaid balance of P 8,210 as of April 5, 2017. Purchases amounting to P 4,045 on groceries and P 12,000 on apparels were made on April 12, 2017 and Aril 15, 2017, respectively. A cash advance of P 10,000 was credited to the account with a flat rate 5% monthly on April 18, 20217. A cash payment of P 15,000 was made on April 30, 2017. If the company policy excludes cash advances in the computation of the ADB, what is the total finance charge on the May 5, 2017 bill if the interest rate on the ADB is 3.5% per month?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 12MC: South Rims has an accounts receivable balance at the end of 2018 of $357,470. The net credit sales...

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