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Gideon Company Uses the Allowance Method of Accounting for Uncollectible

Question 101

Multiple Choice

Gideon Company uses the allowance method of accounting for uncollectible accounts.On May 3,the Gideon Company wrote off the $2,000 uncollectible account of its customer,A.Hopkins.The entry or entries Gideon makes to record the write off of the account on May 3 is:


A)  Accounts Receivable-A Hopkins 2,000 Allowance for Doubtful Accounts 2,000\begin{array}{|l|r|r|}\hline \text { Accounts Receivable-A Hopkins } & 2,000 & \\\hline \text { Allowance for Doubtful Accounts } & & 2,000 \\\hline\end{array}
B)  Allowance for Doubtful Accounts 2,000 Bad debts expense 2,000\begin{array}{|l|r|r|}\hline \text { Allowance for Doubtful Accounts } & 2,000 & \\\hline \text { Bad debts expense } & & 2,000 \\\hline\end{array}
C)  Accounts Receivable-A Hopkins 2,000 Bad debts expense 2,000 Cash 2,000 Accounts Receivable-A Hopkins 2,000\begin{array}{|l|r|r|}\hline \text { Accounts Receivable-A Hopkins } & 2,000 & \\\hline \text { Bad debts expense } & & 2,000 \\\hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable-A Hopkins } & & 2,000 \\\hline\end{array}
D)  Allowance for Doubtful Accounts 2,000 Accounts Receivable-A Hopkins 2,000\begin{array}{|l|r|r|}\hline \text { Allowance for Doubtful Accounts } & 2,000 & \\\hline \text { Accounts Receivable-A Hopkins } & & 2,000 \\\hline\end{array}
E)  Cash 2,000 Accounts Receivable-A Hopkins 2,000\begin{array}{|l|r|r|}\hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable-A Hopkins } & & 2,000 \\\hline\end{array}

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