Charge cards require the cardholder to pay the full balance each due date.
True
or
False

Check the explanation

Explanation:

   January  

Beginning Cash Balance                                   $1,000  

Add: Collection:    

December Sale ($5,000*10%)                           $500  

January Cash Sale                                             $6,000  

January Credit Sale ($4,000*90%)                   $3,600  

Total Cash Availablea                                      $11,100  

Cash payment to suppliersb                          $24,000  

Cash deficit before financinga-b                   $-12,900  

Add: Borrowing  (Using permutation-comb.) $14,040  

Less: Interest Payment                                      $-140  

$14,040*12%*1/12    

Ending Cash Balance                                        $1,000