Michael has a credit limit and a balance of $3,000 on his Visa card. His car broke down, he charged the $500 repairs to his Visa which he knows put him over his credit limit for the month
His payment is due on the 20th so he made sure that he had his $750 payment to the post office on the 20th. Most likely, what penalties or fees, if any, will he incur?
A) Only the penalty APR, depending on his credit card company.
B) Only the over-the-limit fee.
C) Only the late fee, since his payment will lower his balance below his credit limit.
D) He will likely incur the penalty APR, as well as an over-the-limit fee and a late fee—because VISA has to receive his payment in its office by the 20th, not have it postmarked by the 20th.
E) None of the above choices accurately describes the situation.
Answer: D
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The following details have been extracted from the budget of a merchandising company
Rent Expense $8,400 per month Depreciation Expense $3,500 per month Insurance Expense $2,000 per month Miscellaneous Expense 2% of sales, paid as incurred Commissions Expense 8% of sales Salaries Expense $6,000 per month Dec Jan Feb March Sales $55,000 $60,000 $75,000 $90,000 Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month. Rent and miscellaneous expenses are paid as and when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year. A) $21,100 B) $49,200 C) $70,300 D) $26,200
Briefly explain each of the three primary inventory systems
What will be an ideal response?