Journalize the Following Transactions Using the Direct Write-Off Method of Accounting

question 70

Essay

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.
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April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of goods sold is $5,400.
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June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.
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Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.

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Definitions:

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding everything else constant.

College Income

The earnings received from work or investments by someone who is attending college or the revenue generated by colleges through tuition, donations, and grants.

Cross-Price Elasticity

A measure indicating how the demand for one product changes in response to a price change of another product.

Digital College Textbooks

Digital college textbooks are electronically formatted texts that can be accessed on computers or electronic devices, offering a modern alternative to traditional printed textbooks.