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The easiest way to figure out how to work this problem would be to add the
amounts of the returns that Ramon made.
Step 1. $125.00
43.10
+36.80 ________
_______
$204.90
Take the amount that Ramon owes on his Visa account and subtract the amount of the purchases he returned.
Step 2. $780.00
-$204.90
________
$575.10
Take the amount that Ramon now owes on his Visa ($575.00) and subtract the
amount of the payment that he made ($400.00).
Step 3. $575.10
-$400.00
________
$175.10
Now you would take the amount Ramon still owes on his Visa ($175.10) and add the amount of his new purchase ($82.75) and add these two together.
Step 4. $175.10
+$ 82.75
________
$257.85
Ramon now owes $257.85 on his Visa account.