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

question 60

Essay

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.
June 10 Received $1,200 from Jim Dobbs and wrote off the remainder owed of $4,200.
Oct. 11 Reinstated the account of Jim Dobbs and received $4,200 cash in full payment.

---

Definitions:

Constant Growth Model

A method to value a stock by assuming that dividends grow at a constant rate indefinitely.

Capital Gains

The profit earned from the sale of a capital asset, such as stocks, bonds, or real estate, where the sale price exceeds the purchase price.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Efficient Markets Hypothesis

The theory that all available information is already reflected in stock prices, implying it is impossible to consistently achieve higher returns.