On an Average Day, BJ Footwear Receives $26,482 in Checks

question 88

Multiple Choice

On an average day, BJ Footwear receives $26,482 in checks from customers. These checks clear the bank in an average of 1.3 days. The applicable daily interest rate is .016 percent. What is the highest daily fee that should be paid to completely eliminate the collection float? Assume each month has 30 days.

• A) $4.24
• B) $5.51
• C) $5.78
• D) $4.18
• E) $3.29

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Definitions:

Point of Delivery

The specific location or moment when the transfer of goods or services from a seller to a buyer is considered complete.

Competition Act

Legislation aimed at preventing anti-competitive practices in the marketplace, protecting consumers and ensuring fair trade.

Anti-competitive Practices

Business actions that prevent or reduce competition in a market, which can include monopolies, cartels, and predatory pricing.

2009 Amendments

Constitutes specific changes or updates made to a legal document, law, or regulation in the year 2009.