Sunrays,Inc

question 11

Essay

Sunrays,Inc.wrote off the account of one of its customers,Brad Doe,in 2016 for $500.On January 21,2017,Brad unexpectedly repaid his account in full.The company uses the direct write-off method to account for uncollectible receivables.Journalize the entries required for Sunrays,Inc.on January 21,2017.

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Definitions:

Beta

A measure of a security's volatility in relation to the overall market; a beta above 1 indicates higher than market average volatility.

Risk-Free Rate

The expected return on an investment that carries no risk, frequently indicated by government bond yields.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, used widely in statistics to quantify the degree of difference.

Expected Return

The anticipated value or percentage yield that an investment is likely to earn over a specified period.