Question
Use the average daily balance method to compute the finance charge on the credit card account for the month of August(31 days). The starting balance
Use the average daily balance method to compute the finance charge on the credit card account for the month of August(31 days). The starting balance from the previous month is$320. The transactions on the account for the month are given in the table below. Assume an annual interest rate of22% on the account and that the billing date is August 1st.
Date
Transaction
August 4
Made payment of$85
August 10
Charged$150 for hiking boots
August 18
Charged$30 for gasoline
August 25
Charged$26 for restaurant meal
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
978-0132423502
