Paper Company has an investment in the common stock of Scissors Company and appropriately uses the equity method to account for this investment. When Paper receives dividends from Scissors, it debits Cash and credits Investment in Scissors Stock. Write a memo to me explaining why the credit is to the Investment in Scissors Stock account rather than to a revenue account. It will help if you will explain in context of Paper Company and Scissors Company.

Please provide a complete, easy-to-understand justification as concisely as possible. Your justification should not exceed two short paragraphs. Therefore, it should reflect careful thinking and good writing. Please use your own words rather than simply quoting or paraphrasing the textbook or other sources. This means you need to understand what you want to say before you start to write.