A credit card company is studying its late fee policy. The company has two types of customers: revolvers and transactors. It has 30% revolvers and 70% transact balance carried by each type of customer is shown below: Balance, $ 0 2000 4000 6000 Revolver probability Transactor probability 0.2 0.3 0.5 0.5 0.4 0.1 late fees are assessed, customers call and request a reversal. The policy is to allow revolvers to get a refund of the fees, and to deny refunds to transactors. When denied ref ts close their accounts within a year, while 20% of the others whose fees were returned also close their accounts (perhaps they are still unhappy). If you start with 20 accou

A credit card company is studying its late fee policy. The company has two types of customers: revolvers and transactors. It has 30% revolvers and 70% transact balance carried by each type of customer is shown below: Balance, $ 0 2000 4000 6000 Revolver probability Transactor probability 0.2 0.3 0.5 0.5 0.4 0.1 late fees are assessed, customers call and request a reversal. The policy is to allow revolvers to get a refund of the fees, and to deny refunds to transactors. When denied ref ts close their accounts within a year, while 20% of the others whose fees were returned also close their accounts (perhaps they are still unhappy). If you start with 20 accou

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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If a company accepts credit cards, they must record the expense on their books. Please prepare the journal entries for the following scenario: Company A sells $480,000 on credit card sales. The credit card charges a 4.5% fee for the use of the card. The card company also deposits the cash into the company’s bank account the same night as the credit cards are accepted.
Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 5% charge on sales for using its card. On May 26, Brinker had $5,500 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit? Multiple Choice Debit Accounts Receivable $5,225; debit Credit Card Expense $275; credit Sales $5,500. О Debit Cash $5,500; credit Sales $5,500. O Debit Cash $5,775; credit Credit Card Expense $275; credit Sales $5,500. Debit Accounts Receivable $5,500; credit Sales $5,500. O Debit Cash $5,225; debit Credit Card Expense $275; credit Sales $5,500.
American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 5.0% charge on sales for using its card. On June 28, Jervis had $4,900 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit? Multiple Choice Debit Cash $4,900; credit Sales $4,900 Debit Accounts Receivable $4,900; credit Sales $4,90O Debit Cash $5,145.00; credit Credit Card Expense $245.00; credit Sales $4,900 Debit Cash $4,655.00; debit Credit Card Expense $245.00; credit Sales $4,900 < Prev 16 of 20 Next 1069 MAR 15 étv MacBook Air 80 DII DD F2 F3 F4 F5 F6 F7 F8 23 24 2 4 7 8. 9 W R T Y < cO 田

Credit card companies have different policies and rates. One company's policies are as follows: Part 1: a. The monthly finance charge on the amount due is determined by the following rule: 0.0149 times the first $500; 0.0095 times the next $500; and 0.0081 times the amount over $1,000. What is the finance charge on $6,000 rounded to the nearest hundredth of a dollar? $ 52.70 Part 2 out of 2 b. The late charges are 0.05 times the amount past due. What is the late charge on $442.03, rounding the answer to the nearest hundredth of a dollar?
PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS (Take screenshots) La Resolana, S.A., has credit sales of $180,000 per year, with net payment terms of 30 days, which is also the average collection period. La Resolana does not currently offer any cash discounts, so customers take the 30 days to pay. What is the average accounts receivable balance? What is the accounts receivable turnover?
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 1.4% of the average daily balance. Calculate parts a-d using the statement in the popup. E 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 $. (Round to the nearest cent as needed.) Credit card statement Transaction Description Previous balance, $2647.59 Billing date Payment Transaction Amount June 1 June 6 Charge: Gas Charge: Groceries Charge: Gas Charge: Groceries Charge: Clothing End of billing period $1200.00 credit $34.38 $136.53 $41.64 $127.54 $215.18 June 8 June 9 June 17 June 27 June 30 Payment Due Date: July 9
"We have a contract with our partner bank that they pay us a monthly rebate that is calculated as a portion of the total interchange revenue they receive for each transaction that is run through our platform. As part of our contract/application with our customers we offer cash back rewards that is calculated as a percentage of the revenue that we receive from the bank for each of their transactions."Q: How do other credit card companies treat cash back rewards?
The previous statement for your credit card had a balance of $770. You make a payment of $360 but you made addibional purchases of $220. The card carries an APR of 24. What is the finance charge for this manth? (Round your answer to the nearest cent.)
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 1.4% of the average daily balance. Calculate parts a-d using the statement in the popup. EClick 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 $ (Round to the nearest cent as needed.) Credit card statement Transaction Description Previous balance, $2647.59 Billing date Payment Charge: Gas Charge: Groceries Charge: Gas Charge: Groceries Charge: Clothing June 30 End of billing period Payment Due Date: July 9 Transaction Amount June 1 $1200.00 credit $34.38 $136.53 $41.64 $127.54 $215.18 June 6 June 8 June 9 June 17 June 27 Print Done
Jervis accepts all major bank credit cards, including those Issued by Northern Bank (NB), which assesses a 3.0% charge on sales for using its card. On June 28, Jervis had $4,500 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit? Multiple Choice O Debit Accounts Receivable $4,500; credit Sales $4,500 Debit Cash $4,635.00; credit Credit Card Expense $135.00; credit Sales $4,500 Debit Accounts Receivable $4,365.00; debit Credit Card Expense $135.00; credit Sales $4,500 Debit Cash $4,500; credit Sales $4,500 ว Debit Cash $4,365.00; debit Credit Card Expense $135.00; credit Sales $4,500
Suppose that the balance of a certain credit card is P43,744.53. The credit card company charges 3.5% per month. How much is the total balance owed to the credit card company.