Using the cost-adjusted-to-market method of accounting for a long-term investment in stock,the journal entry to record the receipt of dividends involves a credit to Dividend Income.

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The cost-adjusted-to-market method of accounting for long-term stock investments involves adjusting the cost basis of the investment to reflect changes in market value. Dividends received are recorded as Dividend Income, which is a credit to the account. This method is used to show the market value of the investment and the income generated by it over time.

Using the Cost-Adjusted-To-Market Method of Accounting for a Long-Term Investment