A guest folio begins the day with a credit balance of 293.09. Debits of 27.40 and credits of 61.34 are recorded. What is the net outstanding credit?

• A. 259.15
• B. 293.09
• C. 265.69
• D. 327.03

Answer: (D)

Understanding how to compute a guest folio balance when starting with a credit balance and applying debits and credits.

A starting credit balance means the guest has an overpayment or money in their favor. Debits are new charges and increase the amount the guest owes (they add to the balance). Credits are payments or adjustments and reduce the amount owed (they subtract from the balance).

So, begin with 293.09. Add the new charges: 293.09 + 27.40 = 320.49. Then subtract the payments/credits: 320.49 − 61.34 = 259.15.

The net outstanding credit is 259.15, meaning the folio still has a positive balance in the guest’s favor.