Gideon Company Uses the Allowance Method of Accounting for Uncollectible

question 27

Essay

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. The entry or entries Gideon makes to record the write off of the account on May 3 is:
A) $$\begin{array} { | l | r | r | } \hline \text { Accounts Receivable-A. Hopkins } & 2,000 & \\\hline \text { Allowance for Doubtful Accounts } & & 2,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Allowance for Doubtful Accounts } & 2,000 & \\\hline \text { Bad debts expense } & & 2,000 \\\hline \end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Accounts Receivable-A. Hopkins } & 2,000 & \\\hline \text { Bad debts expense } & & 2,000 \\\hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Allowance for Doubtful Accounts } & 2,000 & \\\hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\\hline\end{array}$$

• A)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable-A. Hopkins } & 2,000 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 2,000 \\
• \hline
• \end{array}\]
• B)\[\begin{array} { | l | r | r | }
• \hline \text { Allowance for Doubtful Accounts } & 2,000 & \\
• \hline \text { Bad debts expense } & & 2,000 \\
• \hline
• \end{array}\]
• C)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable-A. Hopkins } & 2,000 & \\
• \hline \text { Bad debts expense } & & 2,000 \\
• \hline \text { Cash } & 2,000 & \\
• \hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\
• \hline
• \end{array}\]
• D)\[\begin{array} { | l | r | r | }
• \hline \text { Allowance for Doubtful Accounts } & 2,000 & \\
• \hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\
• \hline
• \end{array}\]
• E)\[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 2,000 & \\
• \hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\
• \hline
• \end{array}\]

---

Definitions:

Deeper Processing

Refers to the cognitive mechanism where information is processed at a more detailed and comprehensive level, enhancing memory and understanding.

Recite

To repeat aloud from memory before an audience.

Retrieval

The act of retrieving and making conscious the data stored in one's memory.

Self-Referent Encoding

The process of relating new information to personally relevant information during the memory storage process, enhancing recall.