Customer G B) C) D)

question 3

Multiple Choice

Customer G.Smith owed Stonehollow Electronics $125.On April 27,2018,Stonehollow determined this account receivable to be uncollectible and wrote off the account.The company uses the direct write-off method.On July 15,2018,Stonehollow received a check for $125 from the customer.How should the July 15,2018 transaction be recorded?

• A) \[\begin{array} { | l | l | l | l | }
• \hline \text { July 15 } & \text { Cash } & 125 & \\
• \hline & \text { Accounts Receivable - G. Smith } & & 125 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | l | }
• \hline \text { July 15 } & \text { Accounts Receivable - G. Smith } & 125 & \\
• \hline & \text { Bad Debt Revenue } & & 125 \\
• \hline \text { July 15 } & \text { Cash } & 125 & \\
• \hline & \text { Accounts Receivable - G. Smith } & & 125 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | l | }
• \hline \text { July 15 } & \text { Cash } & 125 & \\
• \hline & \text { Bad Debt Expense } & & 125 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | l | }
• \hline \text { July 15 } & \text { Accounts Receivable - G. Smith } & 125 & \\
• \hline & \text { Bad Debt Expense } & & 125 \\
• \hline \text { July 15 } & \text { Cash } & 125 & \\
• \hline & \text { Accounts Receivable - G. Smith } & & 125 \\
• \hline
• \end{array}\]

Calculate the translated amounts for capital assets, considering acquisition dates, useful life, and rate changes.

Analyze the impact of exchange rate changes on the translation of capital assets and related amortization.

Distinguish between current and non-current assets and liabilities in the context of foreign exchange translation.

Understand how dividends and income taxes are treated in foreign currency translation.

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Definitions:

Dividend Growth Rate

The rate of growth in a company's dividend payments, expressed as an annual percentage.

Expected Return

The anticipated profit or loss from an investment over a certain period of time, often expressed as a percentage.

Paid Dividends

Cash or other assets distributed to shareholders out of a corporation's earnings.

Capital Gains Yield

The increase in price of an investment, measured by the difference between the purchase price and the selling price, relative to the purchase price.