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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
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:
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Accounts ReceivableA. Hopkins 2,000 Allowance for Doubtful Accounts 2,000 Cash 2,000 Accounts ReceivableA. Hopkins 2,000 -
Cash 2,000 Bad debts expense 2,000 -
Accounts ReceivableA. Hopkins 2,000 Bad debts expense 2,000 Cash 2,000 Accounts ReceivableA. Hopkins 2,000 -
Allowance for Doubtful Accounts 2,000 Accounts ReceivableA. Hopkinse 2,000 Accounts ReceivableA. Hopkins 2,000 Cash 2,000 -
Cash 2,000 Accounts ReceivableA. Hopkins 2,000
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