Question 1 On October 6, a credit card account had a balance of P10, 000. A purchase of P3, 000 was made on October 10, and P6, 000 was charged on October 16. A payment of P7, 000 was made on October 10. The interest on the average daily balance is 2.5% per month. a. Find the average daily balance if the billing date is November 6. b. Find the finance charge on the November 6 bill.

Question 1 On October 6, a credit card account had a balance of P10, 000. A purchase of P3, 000 was made on October 10, and P6, 000 was charged on October 16. A payment of P7, 000 was made on October 10. The interest on the average daily balance is 2.5% per month. a. Find the average daily balance if the billing date is November 6. b. Find the finance charge on the November 6 bill.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Use the average daily balance method to compute the finance charge on the credit card account for the month of august (31 days). The starting balance from the previous month is $240. The transactions on the account for the month are given in the table. Assume an annual interest rate 17% on the account and that the billing date is august 1. 8/5 payment of $89 8/12 charged $130 8/16 charged $27 8/25 charged $26 what is finance charge of august
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