Gideon Company Uses the Allowance Method of Accounting for Uncollectible

question 123

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

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Definitions:

Corporate Capitalism

Describes an economic and political system in which corporations have significant power and influence over economic and policy decisions.

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Changes aimed at improving democracy through means such as enhancing transparency, accountability, participation, or electoral fairness.

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