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 1.7% of the average daily balance. Calculate parts a-d using the statement in the popup. Click the icon to view the credit card statement. *** a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ 2047.71

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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3:1 Answer B question
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 1.7% of the average daily balance. Calculate parts a-d using the
statement in the popup.
Click the icon to view the credit card statement.
a. Find the average daily balance for the billing period. Round to the nearest cent.
The average daily balance for the billing period is $ 2047.71
(Round to the nearest cent as needed.)
b. Find the interest to be paid on July
The interest to be paid on July 1 is $
(Use the answer from part a to find this answer. Round to the nearest cent as needed.)
10
the next billing date. Round to the nearest cent.
20
C
77°F
Transcribed Image Text: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 1.7% of the average daily balance. Calculate parts a-d using the statement in the popup. Click the icon to view the credit card statement. a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ 2047.71 (Round to the nearest cent as needed.) b. Find the interest to be paid on July The interest to be paid on July 1 is $ (Use the answer from part a to find this answer. Round to the nearest cent as needed.) 10 the next billing date. Round to the nearest cent. 20 C 77°F
Balance method
calculate intere The monthly interest rate is 1.7% of the average daily balance. Calculate parts a-d using
statement in the popup.
4
Credit Card Statement
Transaction Description
Previous balance, $2646.37
June 1
Billing date
June 6
June 8
June 9
June 17
O
June 27
June 30
Payment
Charge: Gas
Charge: Groceries
Charge: Gas
E
Charge: Groceries
Charge: Clothing
End of billing period
Payment Due Date: July 9
a
Transaction Amount
$1000.00 credit
$34.44
$137.96
$41.77
$126.15
$215.52
$7
CO
- - X
Transcribed Image Text:Balance method calculate intere The monthly interest rate is 1.7% of the average daily balance. Calculate parts a-d using statement in the popup. 4 Credit Card Statement Transaction Description Previous balance, $2646.37 June 1 Billing date June 6 June 8 June 9 June 17 O June 27 June 30 Payment Charge: Gas Charge: Groceries Charge: Gas E Charge: Groceries Charge: Clothing End of billing period Payment Due Date: July 9 a Transaction Amount $1000.00 credit $34.44 $137.96 $41.77 $126.15 $215.52 $7 CO - - X
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