Gideon Company Uses the Direct Write-Off Method of Accounting for Uncollectible

question 54

Multiple Choice

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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Definitions:

Financial Reports

Official documents that communicate an organization's financial status to stakeholders, including balance sheets, income statements, and statements of cash flows.

Accounting Team

A group of professionals responsible for managing and reporting an organization’s financial transactions and maintaining its financial health.

Low-context Cultures

Cultures that rely heavily on explicit and direct communication, valuing clarity and precision in language.

Explicit Messages

Communications that clearly and directly convey their meaning without ambiguity.