Suppose the charge account of Strong's Mailing Service at the local supply store had a 1.8% interest rate per month on the average daily balance. Find the average daily balance if Strong's had an unpaid balance on March 1 of $145.60, a payment of $10 posted on March 15, and a purchase of $38.80 posted on March 21. The billing cycle ends March 31. The average daily balance is S (Type an integer or decimal rounded to the nearest hundredth as needed.)
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Average daily balance: It is the credit card’s balance during a given billing cycle.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
