On November 1st, Ben owes $800 on his credit card. On November 5th, Ben pays $60 towards the balance of the card. On November 12th, Ben makes $90 in purchases. On November 22nd, Ben pays $150 towards the balance of the card. The average daily balance of the card for the month of November is

On November 1st, Ben owes $800 on his credit card. On November 5th, Ben pays $60 towards the balance of the card. On November 12th, Ben makes $90 in purchases. On November 22nd, Ben pays $150 towards the balance of the card. The average daily balance of the card for the month of November is

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days. 11 A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent. 22 Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent. 25 Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 8…
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