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Gideon Company Uses the Direct Write-Off Method of Accounting for Uncollectible

Question 118

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