A credit card has a monthly rate of 2.20% and uses the average daily balance method for calculatin interest. Here are some of the details in the June 1 - June 30 itemized billing: June 1 Unpaid Balance: $418.44 Payment Received June 15: $180.00 Purchases Charged to the Account: $211.42 Average Daily Balance: $289.00 Last Day of the Billing Period: June 30 Payment Due Date: July 9 Minimum payment terms are shown below. New Balance Minimum Payment $0.01 to $10.00 No payment due $10.01 to $200.00 $10.00 $200.01 to $250.00 $15.00 $250.01 to $300.00 $20.00 $300.01 to $350.00 $25.00 $350.01 to $400.00 $30.00 $400.01 to $450.00 $35.00 $450.01 to $500.00 $40.00 Over $500.00 1/10 of new balance What is the minimum payment due by July 9? O $40.00 O $35.00 $45.98 $44.99

A credit card has a monthly rate of 2.20% and uses the average daily balance method for calculatin interest. Here are some of the details in the June 1 - June 30 itemized billing: June 1 Unpaid Balance: $418.44 Payment Received June 15: $180.00 Purchases Charged to the Account: $211.42 Average Daily Balance: $289.00 Last Day of the Billing Period: June 30 Payment Due Date: July 9 Minimum payment terms are shown below. New Balance Minimum Payment $0.01 to $10.00 No payment due $10.01 to $200.00 $10.00 $200.01 to $250.00 $15.00 $250.01 to $300.00 $20.00 $300.01 to $350.00 $25.00 $350.01 to $400.00 $30.00 $400.01 to $450.00 $35.00 $450.01 to $500.00 $40.00 Over $500.00 1/10 of new balance What is the minimum payment due by July 9? O $40.00 O $35.00 $45.98 $44.99

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 5EB: Catherines Cookies has a beginning balance in the Accounts Receivable control total account of...

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American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
Catherines Cookies has a beginning balance in the Accounts Receivable control total account of $8,200. $15,700 was credited to Accounts Receivable during the month. In the sales journal, the Accounts Receivable debit column shows a total of $12,000. What is the ending balance of the Accounts Receivable account in the general ledger?
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The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.6% of the average daily balance. Calculate parts a-d using the statement in the popup. transaction description transaction amount previous balance, $2646.05 June 1 billing date June 6 payment $1000.00 credit June 8 charge: gas $36.02 June 9 charge: groceries $138.48 June 17 charge: gas $42.18 charge: groceries $126.42 June 27 charge: clothing $215.69 June 30 end of billing period Payment due date: July 9 A) Find the average daily balance for the billing period. Round to the nearest cent. B) Find the interest to be paid on July 1, the next billing date. Round to the nearest cent. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) C) Find the balance due on July 1. (Use the answer from part b to find this answer.) D) This credit card requires…
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