Question

a customer who has been using the revolving charge plan and paying $20 a month has an outstanding balance of $67.50 for merchandise. if he again pays $20, how much merchandise debt will be shown on the next bill?

Answer 1

If a Customer is using a Revolving Charge Plan and Paying $20 a Month and has an Outstanding balance of $67.50 for a merchandise, and if he pays $20 again then the merchandise debt for the next bill can be calculated as follows:

Particulars	Amount
Opening balance	$67.50
Add: Purchases	0
Less Payments Made	$20
Closing Balance	$47.50

Since interest rate has not been mentioned here, therefore considering it as NIL, the Merchandise Debt for the Next Bill will be $ 47.50.