Gideon Company Uses the Allowance Method of Accounting for Uncollectible

question 213

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

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

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Definitions:

Mechanical Problems

Issues or failures related to the components and systems of a mechanical nature in devices, vehicles, or machinery.

Negative Attitudes

Refers to unfavorable or adverse feelings and perceptions towards a person, object, or idea.

Performance Risk

The perceived potential for a product or service to fail to meet expected performance standards, leading to customer dissatisfaction.

Functional Needs

The basic or practical needs that a product or service fulfills for the customer.