Century 21 Accounting Multicolumn Journal
11th Edition
ISBN: 9781337679503
Author: Gilbertson
Publisher: Cengage
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Abdul has a debit card linked to a checking account with an available balance of $1480.
He also owes $1030 on his credit card, which has a credit limit of $2400.
Use this information to answer the questions below.
(a) Abdul is going to purchase an item with his debit card.
What is the most he can spend?
$0
(b) Abdul is going to purchase an item with his credit card.
What is the most he can spend?
$
(c) Suppose an item costs $1400. Which card can be used for the entire purchase?
Select all that apply. If neither card can be used, check "Neither".
Debit card
n Credit card
n Neither
X
Ś
Travel Planners, Incorporated borrowed $5,000 from First State Bank and signed a promissory note. What entry should Travel Planners record when the note is repaid?
5) Jon has a credit limit of $15,000 on his credit card. He had a previous balance of $427.51. He
made a payment of $400. The total of his purchases that cycle was $989.22. What is Jon's
available credit?
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