Use the Table to Find the Monthly Checking-Account Service Charge

question 8

Multiple Choice

Use the table to find the monthly checking-account service charge for the account.
-Dagmar's Sandwiches, 46 checks, average balance $1,913

• A)$16.70
• B)$9.60
• C)$21.20
• D)$14.20

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Definitions:

Percentage of Sales Method

A forecasting technique used to predict various financial figures, such as expenses or inventory levels, as a fixed percentage of sales.

Allowance for Doubtful Accounts

A contra asset account representing the amount of accounts receivable a company does not expect to collect.

Equity

Equity represents the value that would be returned to a company’s shareholders if all the assets were liquidated and all the debts repaid.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business's operating cycle, whichever is longer.