For the credit card account, assume one month between billing dates and interest of 1.6% per month on the daily average balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous balance: $562 November 4 Billing date November 15 Payment $400 November 18 Groceries $350 November 20 Train card $190 December 1 Holiday shopping $320

For the credit card account, assume one month between billing dates and interest of 1.6% per month on the daily average balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous balance: $562 November 4 Billing date November 15 Payment $400 November 18 Groceries $350 November 20 Train card $190 December 1 Holiday shopping $320

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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Question

1. For the credit card account, assume one month between billing dates and interest of 1.6% per month on the daily average balance.

Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing.

Previous balance: $562

November 4 Billing date

November 15 Payment $400

November 18 Groceries $350

November 20 Train card $190

December 1 Holiday shopping $320

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