What is a bank credit card on financial statements?
What is a bank credit card on financial statements?
Homework Answers
Banks balance sheet is different from the typical company.
You won't find inventory, accounts receivable, or accounts payable. Instead, under assets, you'll see mostly loans and investments, and on the liabilities side, you'll see deposits and borrowings.
ON the asset side banks record – Cash, Securities, Loans, other asset
On the liability side – Deposits, borrowing made by the banks, equity will be recorded.
So credit cards will be recorded on the asset side on the balance sheet.
16 Credit Card Offers Randy just cancelled his credit card with a large bank. A week...
16 Credit Card Offers Randy just cancelled his credit card with a large bank. A week later, a representative of the bank called Randy with an offer of a "better" credit card that will advance Randy $2,000 when he accepts it. Randy could not refuse the offer and several days later receives a check for $2,000 from the bank. With this money, Randy decides to buy a new computer. At the next billing cycle (a month later), the $2,000 advance...
Collecting Credit Card Debt A bank offers a credit card that can be used in various...
Collecting Credit Card Debt A bank offers a credit card that can be used in various locations. The bank’s analysts believe that the percentage P of accounts receivable collected by t months after credit is issued increases at a decreasing rate. Historical data suggest the following function: The average credit issued in any one month is $125 million, and historical experience suggests that for new credit issued in any month, collection efforts cost $1 million per month. Determine the...
A bank auditor claims that credit card balances are normally distributed with mean $3000 and standard...
A bank auditor claims that credit card balances are normally distributed with mean $3000 and standard deviation $500. Suppose the auditor randomly select two card holders What is the probability both of them have card balances more than 2500?
A local bank reviewed its credit card policy with the intention of recalling some of its...
A local bank reviewed its credit card policy with the intention of recalling some of its credit cards. in the past 5% of cardholders defaulted, leaving the bank unable to collect the outstanding balance. Hence managment established a prior probability of .05 that any particular cardholder will default. The bank also found that the probability of missing a monthly payment is.20 for customers who do not default.of course the probality of missing a monthly payment for those who default is...
bondiy tea shoppe had non bank issuers credit card sales 0.052 Bondi Tea Shoppe had non-bank...
bondiy tea shoppe had non bank issuers credit card sales
0.052 Bondi Tea Shoppe had non-bank issued credit card sales of $2.000 with credit card fees 3% (ignore GST). The entry to record the sales is Select one: a. (DR) Cash at Bank 2,000; (CR) Sales Revenue 2,000 b. (DR) Accounts Receivable 1,940 (DR) Fees Expense 60; (CR) Sales Revenue 2,000 C(DR) Accounts Receivable 2,000; (CR) Sales Revenue 2,000 d. (DR) Cash at Bank 2,910 (DR) Fees Expense 90 (CR)...
A Stello's Berry Farm accepted a bank-issued credit card in payment of a $1,300 sales transaction....
A Stello's Berry Farm accepted a bank-issued credit card in payment of a $1,300 sales transaction. Stelloh's bank charges 3% to process the transaction. The Journal entry to record the sales transaction will include (Ignore cost of goods sold) O A. a debit to Cash for $1,300 and a credit to Sales Revenue for $1,300 OB. a debit to Accounts Recevable for $1,261 and a credit to Sales Revenue for $1,261 O C. a debit to Accounts Receivable for $1,300,...
Term Answer Credit scoring A. Debit card B. Description This is the process of evaluating the...
Term Answer Credit scoring A. Debit card B. Description This is the process of evaluating the credit worthiness of a credit applicant via the assessment of an applicant's credit report and the calculation of a credit score. This professional financial advisor, in return for a fee, represent overextended consumers in negotiations with creditors. The advisor's objectives are often to reduce the size of consumers' payments, the size of their debt, or both This refers to a bank credit card that...
CREDIT CARDS: If you have a credit card, you may use it to answer these questions....
CREDIT CARDS: If you have a credit card, you may use it to answer these questions. If you don't have a credit card or don't want to use your credit card, then use one you get in the mail or one from on-line. Find the following information: 1. What type of credit card is it? store (or airlines) card or bank card or other? 2. How is the finance charge (FC) calculated? 3. What is the APR for this credit...
A bank wonders whether omitting the annual credit card fee for customers who charge at least...
A bank wonders whether omitting the annual credit card fee for customers who charge at least $18,000 in a year would increase the amount charged on its credit card. The bank makes this offer to a random sample of 50 of its existing customers. It then compares how much these customers charge this year with the amount that they charged last year. The sample mean increase is $500 and the sample standard deviation is $800. To determine whether there is...
Schofield Retailers accepted $40000 of Silver Bank MasterCard credit card charges for merchandise sold on August...
Schofield Retailers accepted $40000 of Silver Bank MasterCard
credit card charges for merchandise sold on August 1. Silver Bank
charges 4% for its credit card use. The entry to record this
transaction by Schofield Retailers will include a credit to Sales
Revenue of $40000 and a debit(s) to
Accounts Receivable for $40000.
Accounts receivable for $38400 and Service Charge Expense for
$2400.
Cash for $38400 and Service Charge Expense for $1600.
Cash for $40000.
16 Credit Card Offers Randy just cancelled his credit card with a large bank. A week later, a representative of the bank called Randy with an offer of a "better" credit card that will advance Randy $2,000 when he accepts it. Randy could not refuse the offer and several days later receives a check for $2,000 from the bank. With this money, Randy decides to buy a new computer. At the next billing cycle (a month later), the $2,000 advance...
bondiy tea shoppe had non bank issuers credit card sales
0.052 Bondi Tea Shoppe had non-bank issued credit card sales of $2.000 with credit card fees 3% (ignore GST). The entry to record the sales is Select one: a. (DR) Cash at Bank 2,000; (CR) Sales Revenue 2,000 b. (DR) Accounts Receivable 1,940 (DR) Fees Expense 60; (CR) Sales Revenue 2,000 C(DR) Accounts Receivable 2,000; (CR) Sales Revenue 2,000 d. (DR) Cash at Bank 2,910 (DR) Fees Expense 90 (CR)...
A Stello's Berry Farm accepted a bank-issued credit card in payment of a $1,300 sales transaction. Stelloh's bank charges 3% to process the transaction. The Journal entry to record the sales transaction will include (Ignore cost of goods sold) O A. a debit to Cash for $1,300 and a credit to Sales Revenue for $1,300 OB. a debit to Accounts Recevable for $1,261 and a credit to Sales Revenue for $1,261 O C. a debit to Accounts Receivable for $1,300,...
Term Answer Credit scoring A. Debit card B. Description This is the process of evaluating the credit worthiness of a credit applicant via the assessment of an applicant's credit report and the calculation of a credit score. This professional financial advisor, in return for a fee, represent overextended consumers in negotiations with creditors. The advisor's objectives are often to reduce the size of consumers' payments, the size of their debt, or both This refers to a bank credit card that...
CREDIT CARDS: If you have a credit card, you may use it to answer these questions. If you don't have a credit card or don't want to use your credit card, then use one you get in the mail or one from on-line. Find the following information: 1. What type of credit card is it? store (or airlines) card or bank card or other? 2. How is the finance charge (FC) calculated? 3. What is the APR for this credit...
Schofield Retailers accepted $40000 of Silver Bank MasterCard
credit card charges for merchandise sold on August 1. Silver Bank
charges 4% for its credit card use. The entry to record this
transaction by Schofield Retailers will include a credit to Sales
Revenue of $40000 and a debit(s) to
Accounts Receivable for $40000.
Accounts receivable for $38400 and Service Charge Expense for
$2400.
Cash for $38400 and Service Charge Expense for $1600.
Cash for $40000.
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