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:

Annual Dividend

The total dividend payment a shareholder receives from a company over one fiscal year.

Increasing the Dividend

The action by a company to raise the amount of money paid to shareholders out of its profits on a per-share basis.

Rate of Return

The rate at which an investment gains (or loses) value over a specified period, expressed as a percentage.

Growth Rate

A percentage figure indicating the rate at which a company's revenue or earnings are increasing over a specific period, typically used as a measure of a company’s financial health or performance.