Gideon Company Uses the Allowance Method of Accounting for Uncollectible

question 100

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. On July 10, the entry or entries Gideon makes to record the recovery of the bad debt is:
A) $$\begin{array} { | l | r | r | } \hline \text { Accounts Receivable-A. Hopkins } & 2,000 & \\\hline \text { Allowance for Doubtful Accounts } & & 2,000 \\\hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 2,000 & \\\hline \text { Bad debts expense } & & 2,000 \\\hline\end{array}$$
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) $\begin{array}{|l|r|r|}\hline \text { Allowance for Doubtful Accounts } & 2,000 & \\\hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\\hline \text { Accounts Receivable-A. Hopkins } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}$
E) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable-A. Hopkins } & & 2,000 \\\hline\end{array}$$

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

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Definitions:

Sampling Distribution

A random sample's statistic's chance distribution.

Sample Size

The number of observations or data points collected in a sample, which can influence the reliability and accuracy of statistical analysis.

P-Value

The probability of observing data as extreme as, or more than, what was actually observed, assuming the null hypothesis is true.

Sample Proportion

The ratio of members in a sample that have a particular attribute to the total number of members in that sample.