Gideon Company Uses the Direct Write-Off Method of Accounting for Uncollectible
Question 118
Question 118
Multiple Choice
Gideon Company uses the direct write-off method of accounting for uncollectible accounts.On May 3,the Gideon Company wrote off the $2,000 uncollectible account of its customer,A.Hopkins.On July 10,Gideon received a check for the full amount of $2,000 from Hopkins.On July 10,the entry or entries Gideon makes to record the recovery of the bad debt is:
A) Accounts Receivable-A Hopkins Allowance for Doubtful Accounts Cash Accounts Receivable-A Hopkins 2,0002,0002,0002,000 B) Cash Bad debts expense 2,0002,000 C) Accounts Receivable-A Hopkins Bad debts expense Cash Accounts Receivable-A Hopkins 2,0002,0002,0002,000 D) Allowance for Doubtful Accounts Accounts Receivable-A Hopkinse Accounts Receivable-A Hopkins Cash 2,0002,0002,0002,000 E) Cash Accounts Receivable-A Hopkins 2,0002,000
Correct Answer:
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