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

question 44

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 the merchandise 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 for and received cash in full payment.

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Definitions:

Civil Society

A realm of organized social life that is voluntary, self-generating, self-supporting, autonomous from the state, and bound by a legal order or set of shared rules.

Fortunate Fifth

Refers to the top 20% of the population in terms of income or wealth, often highlighted in discussions of economic inequality.

Privileged Position

A social or economic advantage held by a particular group or individual, allowing them access to certain benefits not widely available to others.

Business

The practice of engaging in commerce, trade, or professional activities with the aim of generating profits and sustaining operations.