For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.5 % per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $449.12 January 10 Billing Date January 12 Returns $102.72 January 21 Clothes $117.41 January 25 Bus tickets $76.64 February 2 Payment $135 February 8 Flowers $56.23 (a) The average daily balance is $
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.
|
Previous Balance:
$449.12
|
||
|
January 10
|
Billing Date
|
|
|
January 12
|
Returns
|
$102.72
|
|
January 21
|
Clothes
|
$117.41
|
|
January 25
|
Bus tickets
|
$76.64
|
|
February 2
|
Payment
|
$135
|
|
February 8
|
Flowers
|
$56.23
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
