Gideon Company uses the direct write-off method of accounting for uncollectible

Question

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. The entry or entries Gideon makes to record the write off of the account on May 3 is:

Accounts Receivable-A. Hopkins 2,000 Bad Debts Expense 2,000 Allowance for Doubtful Accounts 2,000 Accounts Receivable-A. Hopkins 2,000 Accounts Receivable-A. Hopkins 2,000 Cash 2,000 Bad Debts Expense Accounts Receivable-A. Hopkins 2,000 Cash 2,000 Accounts Receivable-A. Hopkins 2,000

Explanation / Answer

The Below Journal Entry is correct.

Bad Debts Expenses                                               2,000

          Accounts receivable -A. Hopkins                              2,000

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