I'm not sure that I understand this March 15 Swifty sold merchandise for $1,000 in its retail outlet and the customer used his Swifty credit card. March 31 Swifty added 1.4% monthly interest to the...

I'm not sure that I understand this

March 15
Swifty sold merchandise for $1,000 in its retail outlet and the customer used his Swifty credit card.

March 31
Swifty added 1.4% monthly interest to the customer’s credit card balance.

To calculate we need to use formula [$1,000 X 1.4% X (1/2) month].

I would appreciate it if somebody would explain to me why we multiplied [($1,000 X 1.4%)
on
1/2 months]

Extracted text: Question 1 of 8 > 1.75 / 1.75 The following are selected transactions of Swifty Company. Swifty sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Dodson Company for $11,000, terms 4/10, n/30. Dodson Company returned merchandise worth $400 to Swifty. Swifty collected the amount due from Dodson Company from the March 1 sale. 15 Swifty sold merchandise for $1.000 in its retail outlet. The customer used his Swifty credit card. 31 Swifty added 1.4% monthly interest to the customer's credit card balance. Preparejournal entries for the transactions above. (Ignore cost of goods sold entries and explanations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit March 1 Accounts Receivable 11,000 Sales Revenue 11,000 March 3 Sales Returns and Allowances 400 Accounts Receivable 400 March 9 Cash 10176 Sales Discounts 424 Accounts Receivable 10600 March 15 Accounts Receivable 1,000 Sales Revenue 1000 March 31 Accounts Receivable 7. Interest Revenue 7