Gideon Company Uses the Allowance Method of Accounting for Uncollectible
Question 109
Question 109
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.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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