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

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Essay

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.

April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of goods sold is $5,400.

June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.

Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.


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