On the December 8 billing date, Hakeem had a balance due of $617.91 on his credit...

On the December 8 billing date, Hakeem had a balance due of $617.91 on his credit card. The transactions during the following month were:

December 10 Charge: football tickets $170.24
December 12 Payment: $93.12
January 3 Charge: restaurant meal $53.36

The interest rate on the card is 16% per month. Using the average daily balance method, find the finance charge and the balance due on January 8.

(The finance charge is $112.75 and the balance due is $861.14, but I am having a hard time figuring out this method to get these answers. Can someone please help?)

Expert Solution

Balance due = add purchases to Opening balance due and add finance charge and subtract Payments made

Please dont forget to upvote

jeff jeffy answered 1 year ago

On the November 6 billing date, Pedro had a balance due of $455.76 on his credit...

On the November 6 billing date, Pedro had a balance due of $455.76 on his credit card. The Transactions during the following month were: November 8th Charge- $51.46 November 9th Payment-$68.83 November 13th charge- $232.85 December 3rd charge- $30.26 The interest rate on the card is 1.6% per month. Using the Average daily balance method, find: A. the average daily balance for the billing period B. the finance charge to be paid on December 6, Pedro's next billing date. C....

On March 5, the billing date Anna has a balance of 567.20 on her credit card....

On March 5, the billing date Anna has a balance of 567.20 on her credit card. The transcations during the following month were March 8 Payment $275.00 March 21 Charge Shopping $330.00 March 27 Charge Nails $190.80 April 2 Charge Clothing $84.75 FInd the finance charge on April 5 using the unpaid balance method. (the unpaid balance uses the final balance on April 5 as the principal. Interest rate ise 1.1% per month. Find the balance due on April 5...

Find the average daily balance for the given credit-card account. Assume the billing date is the...

Find the average daily balance for the given credit-card account. Assume the billing date is the same day in each month, and use the number of days in each month. Then find the finance charge if interest is 1.11.1% per month on the average daily balance. Finally, find the balance at the end of the billing cycle. Previous balance $655.39655.39 Jan. 15Jan. 15 Billing Date Jan. 20Jan. 20 Mail Order $nbsp 21.91 21.91 Jan. 23Jan. 23 Returns CR $nbsp 19.45...

Calvin Hopkins has a credit card for which the billing date is the same each month....

Calvin Hopkins has a credit card for which the billing date is the same each month. Here are the transactions for the last month: Previous Balance $634.27 April 15 Billing Date April 21 Return Credit $116.36 April 22 Purchase $101.02 April 30 Purchase $122.16 May 8 Payment Credit $200.00 Find the average daily balance. The monthly interest charge is 1 ½% per month on the average daily balance. Find the finance charge. SHOW ALL WORK!!!

Question (5) Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December...

Question (5) Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2016, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $120,000 1% 1–30 days past due 20,000 3% 31–60 days past due 10,000 6% 61–90 days past due 10,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable ...

At December 31, 2018, Splish Brothers Inc. Company had a credit balance of $19,100 in Allowance...

At December 31, 2018, Splish Brothers Inc. Company had a credit balance of $19,100 in Allowance for Doubtful Accounts. During 2019, Splish Brothers Inc. wrote off accounts totaling $11,100. One of those accounts ($2,900) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $29,900. Prepare journal entries to record the 2019 transactions of Splish Brothers Inc. Company b)On July 4, Blossom Restaurant accepts a Visa card for a...

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31,...

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2017, of $2,200. Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible $ 148,000 Not due (under 30 days) 1 % 43,000 1 to...

Credit Losses Based on Accounts Receivable At December 31, Rinehart Company had a balance of $314,900...

Credit Losses Based on Accounts Receivable At December 31, Rinehart Company had a balance of $314,900 in its Accounts Receivable account and a credit balance of $2,800 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $321,000 in debit balances and $6,100 in credit balances. The company aged its accounts as follows: Current $266,000 0-60 days past due 32,000 61-180 days past due 14,200 Over 180 days past due 8,800 $321,000 In the past, the company...

Determine Due Date and Interest on Notes Determine the due date and the amount of interest...

Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes: Date of Note Face Amount Interest Rate Term of Note a. January 10* $40,000 5% 90 days b. March 19 18,000 8 180 days c. June 5 90,000 7 30 days d. September 8 36,000 3 90 days e. November 20 27,000 4 60 days *Assume that February has 28 days. Assume 360-days in a year when...

Mercantile credit analysis is done: each time the debtor misses a due date. every time a...

Mercantile credit analysis is done: each time the debtor misses a due date. every time a purchase is made on account. at regular intervals such as every six months or every year. upon receipt of a credit application. A PMSI (Purchase Money Security Interest) is Taken by the seller of the collateral to secure payment of all or part of its purchase price. Never used by trade creditors. Always required for consumer credit. Part of any strong commercial credit recommendation....

Question