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Strike441 [17]
3 years ago
9

Katsumi applied for a credit card with a limit of $1,000. When the application was approved, Katsumi bought a new CD player and

speakers for $975. The credit card company offered to ignore the finance charges if Katsumi makes the minimum monthly payment of $15. How many months will Katsumi need to pay off the music system at this rate?
Business
1 answer:
OlgaM077 [116]3 years ago
3 0

Answer:

65 months

Explanation:

Data provided in the question:

Limit of the credit card = $1,000

Cost of the new CD player and speakers = $975

Minimum monthly payment made by Katsumi = $15

Now,

since there are no finance charges charged,

therefore,

the net payment that has to be made is $975

Therefore,

Months needed to pay off the rate

= [ Net payment amount ] ÷ [ Minimum monthly payment ]

= $975 ÷ $15 per month

= 65 months

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PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales
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3 years ago
In 2020, Neighbor Co-Op Inc. sells 1,000 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold
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Answer:

a.

Date                      Account Title                                    Debit                Credit

Dec, 31. 2020       Cash                                              $1,000

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b.

Date                      Account Title                                    Debit                Credit

Dec, 31. 2020       Customer deposits                          $800

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c.

Date                      Account Title                                    Debit                Credit

Dec, 31. 2020       Customer deposits                          $120

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                            Inventory                                                                   $  96

7 0
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