[hlpplz]

On April 10, Beth Smith uses her Diamont Co. credit card to purchase merchandise from Diamont Co. for $9,249. On May 10, Dawes is billed for the amount due of $9,249. On May 12, Dawes pays $6,017 on the balance due. On June 10, Beth Smith is billed for the amount due, including interest at 3% per month on the unpaid balance as of February 12. Prepare the entries on Diamont Co.'s books related to the transactions that occurred on April 10, May 12, and June 10. (Round all answers to 0 decimal places.)

Date Account Debit Credit
April 10 Accounts receivable 9,249
Sales 9,249
May 12 Cash 6,017
Accounts receivable 6,017

June 10 Accounts receivable
Interest revenue

How do I get the June 10 account amounts? I tried the remaining account balance of $3,232 and multiplied it by 3% to get 96.96, then rounded it to get $97, so $3,232 + $97 = $3,329
Where did I calculate wrong?

[morgaine300]

I see nothing wrong with what you did. If you're entering it into software that tells you when something is incorrect, the quality control on those is not so hot sometimes, and it's not uncommon for them to say it's incorrect when it's correct.

The only thing that would make any difference is if they're charging by exact days because that's 29 days. However, it says "per month" and since months have different numbers of days in them, how would you know how to adjust that for 29 days? So I can't see that being the problem cause that's just kind of silly.

The one thing I did notice is that you've used two different names: Beth Smith and Dawes. Who is Dawes? I might have thought that was a different person (and therefore Beth Smith still owes 9249), except it says Dawes paid on the balance of 9249, same number. You also have "as of February 10" in there, which makes no sense. So you do have some discrepancies in the information given, but I ignored the Feb. 10 cause it makes no sense, and assumed we were talking about one person. If my assumptions are incorrect -- well, then you'd have to clear up the discrepanies first.