From the following facts, Molly Roe has requested you to calculate the average daily balance. The customer believes the average daily balance should be $877.67. Respond to the customer’s concern. Note: Round your final answer to the nearest cent. 28-day billing cycle 3/18 Billing date $ 672 Previous balance 3/24 Payment $ 59 Credit 3/29 Charge: Sears 218   4/5 Payment 17 Credit 4/9 Charge: Macy’s 166     Average daily balance:

Q: Present the journal entries specified below. Wildhorse Company sells $168,000 of accounts receivable…

A: Sno. Account Titles and Explanation  Debit   Credit  (A) Cash   ($ 168,000 X 97.5%)  $ 163,800…

Q: Shores Clinic provided medical services worth $1,000 to a customer on account. Because the customer…

A: Introduction: The journal entry is used to record information about transactions that occur…

Q: Dallas Pierce's most recent credit card statement follows. Her finance charge is 18% APR. Calculate…

A: The annual rate that is earned from the investment or charged for a borrowing is an annual…

Q: Vail Ski Shop received a $1,221 invoice dated July 28 with 2/10, 1/15, n/60 terms. On August 11,…

A: a. Credit = Amount paid / (1 - discount rate) = $505 / (1 - 0.01) = $510.10

Q: On June 12, Music, Incorporated sells $4,000 of goods on account to a credit customer with credit…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Calculate the average daily balance and finance charge on the statement below. Note: Round your…

A: The average daily balance is a common accounting method that calculates interest charges by…

Q: Part of your job is to review customer requests for credit. You have three new credit applications…

A: Lets understand the basics.Current ratio compares current assets with current liability. It shows…

Q: Deepa has a revolving credit account at an annual percentage rate of 18%. Her previous monthly…

A: Finance charge = Previous balance * Monthly interest rate Finance charge = $240.97*18%/12 Finance…

Q: Lamps Unlimited, a wholesaler, sold several crates of lighting for $3,100 on account, to a customer…

A: Credit terms of 2/20, n/60 indicates:- If the payment made within the 20 days, 2% discount will be…

Q: On July 1, Crown Point Corp. sold merchandise on account to Cambridge Inc. for $60,800, terms n/30.…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Beth uses the net invoice method to record sales on account.  Beth made sales of $40,000 with terms…

A: Receivables: Receivables refer to an amount to be received in future. General classifications of…

Q: Bell provides $500 of services to customers on account with terms 3/10, n/30. The Service Revenue…

A: Sales discount refers to the relaxation provided by the business entity to its creditors. Every…

Q: Calculate the average daily balance and finance charge on the statement below. Note: Round your…

A: The average daily balance is a common accounting method that sets interest costs by using the…

Q: Kimberly has a revolving credit account at an annual percentage rate of 15%. Her previous monthly…

A: Monthly percentage rate = Annual Percentage Rate / Number of months

Q: Warton Company posts individual sales to the accounts receivable subsidiary ledger immediately. At…

A: Sales are made on cash and credit basis. The amount to be collected from sales made on credit basis…

Q: From the following facts, Molly Roe has requested you to calculate the average daily balance. The…

A: Daily  balance is given as: Daily balance=Previous balance+ purchases+cash advance - payments

Q: Consider the following transaction: On March 6, Fun Cards sells 560 card decks with a sales price of…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: The activity on Marny Zell's MasterCard account for one billing period is shown below. Find the…

A: Average daily balance  Average daily balance is a useful accounting method utilized by the credit…

Q: The credit card with the transactions described on the right uses the average daily balance method…

A: Average daily balance is the average balance on the whole month sale and purchase and is the basis…

Q: From the following facts, Molly Roe has requested you to calculate the average daily balance. The…

A: The average daily balance is the estimation of the amount on which the interest has been calculated…

Q: On January 15, Ross Furniture, Inc., accepts a $5,000, 180-day, 10 percent note from a customer at…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: You have a revolving credit account at an annual percentage rate of 18%. Use the average daily…

A: Answer is Option B =$151.28

Q: The activity on Monique Ramirez’ Visa account for one billing period is shown below. Find the…

A: Finance charge is the charges charged by a credit card company which is calculated on the basis of…

Q: Calculate the average daily balance and finance charge on the statement below. Note: Round your…

A: Credit cards refer to instruments used to raise debt capital for use where the money is used earlier…

Q: An invoice for $589 is dated June 19, discount 4/20. Shipping charges are FOB shipping point for the…

A: The terms "4/20" on the invoice indicate a cash discount of 4% if paid within 20 days. The invoice…

Q: Calculate the average daily balance and finance charge on the statement below. Note: Round your…

A: The finance charge is the cost determined by multiplying the estimated rate of finance with the…

Q: determine the correct amount of the end-of-month posting the sales journal to the Account Receivable…

A: Accounts Receivable -Money owed to a vendor by purchasers who have not made their payments yet is…

Q: Flowers, Inc. receives a partial payment from Bridal Boutique on three open invoices. How should…

A: Flowers, Inc. has received a partial payment from Bridal Boutique. This payment is meant to cover…

Q: The credit card with the itemized billing statement below uses the average daily balance method to…

A: Credit cards are offered by financial institutions to customers to purchase certain items out of…

Q: O $153.12 O $155.31 O $268.34 O $299.05

A: The average daily balance is a typical accounting technique for calculating interest charges that…

Q: Kimberly has a revolving credit account at an annual percentage rate of 15%. Her previous monthly…

A: Step 1 A sort of credit facility offered by banks is a credit card, which enables users to borrow…

Q: a. Find the average daily balance for the billing period. Round to the nearest cent. 4 The average…

A: Average Daily Balance: It is applied by credit card firms to calculate the amount of interest due…

Q: For the credit card account, assume one month between billing dates (with the appropriate number of…

A: Credits cards are now days very common and used by every one and provide short term credit and…

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.