The IM Broke Co., has the following collection pattern for its accounts receivable: 40% in the month of sale 50% in the month following the sale 8% in the second month following the sale 2% uncollectible The company has recent credit sales as follows: P200,000 April May P420,000 June P350,000

For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.6% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $754.46 July 8 Billing Date Payment July 15 July 25 Lunch August 2 Concert tickets $300 $53.79 $76.67 (a) The average daily balance is $. (Round to the nearest cent as needed.) (b) The finance charge is $. (Round to the nearest cent as needed.) (c) The account balance for the next billing is $. (Round to the nearest cent as needed.)

Prime Products hopes to borrow $51,000 on April 1 and repay it plus interest of $860 on June 30. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $24,400. Accounts receivable on April 1 will total $151,200, of which $129,600 will be collected during April and $17,280 will be collected during May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments April $285,000 $194,000 May $ 548,000 June $ 251,000 $ 179,000 $ 171,000 $ 35,400 $ 35,400 $ 19,900 $ 35,800 $ 35,800 $ 35,800 Advertising Equipment purchases Depreciation $ 64,400 $ 64,400 $…

ProBuilder has the following June 30 fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,000. Of the $10,000 of receivables, $2,000 are within a 3% discount period, meaning that it expects buyers to take $60 in future discounts arising from this period’s sales. a. Prepare the June 30 fiscal-year-end adjusting journal entry for future sales discounts. b. Assume the same facts above and that there is a $10 fiscal-year-end unadjusted credit balance in the Allowance for Sales Discounts. Prepare the June 30 fiscal-year-end adjusting journal entry for future sales discounts.

Complete the following: Invoice April 27 Date goods are received Terms 4/10 EOM Last day of discount period Final day bill is due (end of credit period)

Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $123,700 April 117,500 Мay 106,900 Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 72% of the remainder of the expenses are expected to be paid in the month in which they are incurred with the balance to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May. Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March Аpril Мay March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May

Based on the information given below, what is the "Days Revenue in Accounts Receivable" for the quarter ending September 30? For this problem, assume that the quarter has 90 days. (Round your answer to 2 decimal places. For example, 12.3456 should be entered as 12.35.) Month Revenues A/R at End of Quarter July *186,049 26,843 August 208,033 85,406 September 209,968 63,674 TOTALS ? ?

Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 21%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.) Month Previous Month's Balance (in $) Finance Charge (in $) Purchases and Cash Advances Payments and Credits New Balance End of Month (in $) June $824.08 $14.42 $159.38 $300.00 $697.88 July $ $ $72.59 $140.00 $ Need Help? Read It

Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $152,100 April 139,900 May 127,300 Depreciation, insurance, and property taxes represent $32,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 62% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.

Consider the following credit card activity for the month of September: Date Balance September 1 $0 September 7 $331 September 13 $935 September 21 $1,552 September 25 $ 2,208 If this card's annual APR is 20.9% and the September balance is not paid during the grace period, how much interest is owed for September? There are 30 days in September. Round your answer to the nearest dollar.