Using the unpaid balance method, find the current month's finance charge on a credit card account having the following transactions.Last month's balance: $255Last payment: $130Annual Interest rate: 21%Purchases $556Returns: $117The finance charge is $(Round to the nearest cent)

The Finance charge is basically the expense or cost which one incurs whether being the individual,…

Using the unpaid balance method, find the current month's finance charge on a credit card account having the following transaction Last month's balance: $255 Last payment: $130 Annual Interest rate: 21% Purchases $556 Returns $117 The finance charge is $ (Round to the nearest cent)

Using the unpaid balance method, find the current month's finance charge on a credit card account having the following transaction Last month's balance: $255 Last payment: $130 Annual Interest rate: 21% Purchases $556 Returns $117 The finance charge is $ (Round to the nearest cent)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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Concept explainers

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.

Question

Using the unpaid balance method, find the current month's finance charge on a credit card account having the following transactions.
Last month's balance: $255
Last payment: $130
Annual Interest rate: 21%
Purchases $556
Returns: $117
The finance charge is $
(Round to the nearest cent)

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