Calculate the Average Daily Balance (Assume a 30-Day Billing Cycle)

question 27

Short Answer

Calculate the average daily balance (assume a 30-day billing cycle):
$\begin{array} { l l l } 4 / 20 & \text { Billing Date Previous Balance } & \$ 700 \\4 / 26 & \text { Payment } & \$ 200 \\4 / 30 & \text { Charge } & \$ 400 \\5 / 4 & \text { Payment } & \$ 150 \\5 / 12 & \text { Cash Advance } & \$ 180\end{array}$

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Definitions:

Volume

The quantity of something, often measured in units, pieces, or amounts, used in various contexts such as sales, production, and trading.

Double-entry System

A system that records in appropriate accounts the dual effect of each transaction.

Double Line

This term is often used in accounting to denote totals or sums in financial statements, represented by drawing a double line.

Normal Balance

An account balance on the side where an increase in the account is recorded.