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:

Price

The amount of money expected, required, or given in payment for something.

Delivery

The process of transporting goods from one place to another or the act of transferring the possession of a legal instrument.

Valid Offer

A legally binding proposal made by one party to another to form a contract, requiring clear terms, intention, and communication.

Knowledge

The understanding, awareness, or familiarity gained through education or experience.