Parker Young recently received his monthly MasterCard bill for the period June 1-30, 2017, and wants to verify the monthly finance charge calculation, which is assessed at a rate of 19% per year and based on ADBs, including new purchases. His outstanding balance, purchases, and payments are as follows:Previous balance:$256 Purchases: Payments: June 4$117 June 21$35June 12$79 June 20$92 June 26$72 What is his ADB for the period? (Use a table like the one in Exhibit 6.8 for your calculations.) Do not round intermediate calculations. Round the answer to 2 decimal places.What is his the finance charge for the period? (Use a table like the one in Exhibit 6.8 for your calculations.) Do not round intermediate calculations. Round the answer to 2 decimal places.

Average daily balances(ADB) is calculated by summing up all your balances at the end of each day for…

Answered: Parker Young recently received his…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parker Young recently received his monthly MasterCard bill for the period June 1-30, 2017, and wants to verify the monthly finance charge calculation, which is assessed at a rate of 19% per year and based on ADBs, including new purchases. His outstanding balance, purchases, and payments are as follows:

Previous balance:	$256
Purchases:		Payments:
June 4	$117	June 21	$35
June 12	$79
June 20	$92
June 26	$72

What is his ADB for the period? (Use a table like the one in Exhibit 6.8 for your calculations.) Do not round intermediate calculations. Round the answer to 2 decimal places.
What is his the finance charge for the period? (Use a table like the one in Exhibit 6.8 for your calculations.) Do not round intermediate calculations. Round the answer to 2 decimal places.

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