Gideon Company uses the allowance method of accounting for uncollectible account

Question

Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,300 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,300 from Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:

Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,300 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,300 from Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:

Explanation / Answer

entry to be made:

1. for allowance for non recoverable amount:

Allowance for A.Hopkin A/c Dr. $2300

To Account Receivable A/c $2300

2.

Write off A/c Dr. $2300

To Allownace for A. Hopkin $2300

3. on recovery of amount:

a. Account receivable A/c Dr. 2300

To Write off a/c Dr. 2300

b. Cash a/c Dr. 2300

to Account receivable a/c 2300

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