7. Using the following table containing the dates of purchases and payments to determine the average daily balance of a credit card at the end of the billing cycle, assuming 30 days in the month (Round to the nearest cent). Days Purchase/Payment Dollar Amount Unpaid Balance Раyment $1,500 $120 $670 $375 $85 3 10 Purchase 22 Purchase 26 Рaуment
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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