1. **State the problem:** Calculate the balance due on May 7 given the average daily balance, ending balance, and APR. 2. **Formula used:** The finance charge is calculated by multiplying the average daily balance (ADB) by the monthly interest rate. 3. **Important rules:** APR is annual percentage rate, so monthly interest rate = \frac{APR}{12}. 4. **Calculate monthly interest rate:** $$\text{Monthly interest rate} = \frac{2.7}{12} = 0.225\% = 0.00225$$ 5. **Calculate finance charge:** $$\text{Finance charge} = 585 \times 0.00225 = 1.31625$$ 6. **Calculate balance due:** $$\text{Balance due} = \text{Ending balance} + \text{Finance charge} = 322 + 1.31625 = 323.31625$$ 7. **Round to nearest cent:** $$323.32$$ **Final answer:** The balance due on May 7 is **323.32**.