Question

Whats the total Late Fee Interest charged to the customers based on the policy below? Vittorla's Furniture Bazaar Accounts Receivable Aging Summary As of June 30, 2015 Customer Current 1-30 Days 31-60 Days 61-90 Days 90 Days Total Bull and Bear Café $750 $750 Eckhardt Design $1,000 $1,000 Halifax Sporting Goods $500 $500Walker Studios $1,500 $1,500TOTAL $2,250 $500 $1,000 $0 $0 $3,750 Late Fee Interest Policy Age Interest Current 0%1-30 Days 0%31-60 Days 5% 61-90 Days 10% >90 Days 20% a. $0 b. $50 c. $75 d. $100 e. $200

Answer 1

Answer:

b. $50

Explanation:

Vittorla's Furniture Bazaar Accounts Receivable

Aging Summary As of June 30, 2015

Customer             Current/1-30 Days/31-60 Days/61-90 Days/>90 Days

Total B&B Café      $750  

Eckhardt Design                                     $1,000

Halifax Sporting                   $500

Walker Studios     $1,500

Late Fee Interest Policy

Age Interest

Current 0%   x ($750 + $1,500) = $0

1-30 Days 0% x $500 = $0

31-60 Days 5% x $1,000 = $50

61-90 Days 10%

>90 Days 20%

total interest charged = $0 + $0 + $50 = $50