C) Allowance for Doubtfal Accounts D) Allowance for Doubtful Accounts E) ad Debt

Question

C) Allowance for Doubtfal Accounts D) Allowance for Doubtful Accounts E) ad Debts Expense lowance for Doubtful Accounts 18) 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: 18) A) llowance for Doubtful Accounts Accounts Receivable-A. Hopkinse Accounts Receivable-A. Hopkins ash 2,00 2,00 2,000 B) Accounts Receivable -A. Hopkins 2,00 ad debts expense 2,00 ash Accounts Receivable-A. Hopkins 2,00 C) Accounts Receivable-A. Hopkins Allowance for Doubtful Accounts Cash Accounts Receivable-A. Hopkins 2,00 2,000 2,000 2,000 D) 2,00 ash 2,000 Bad debts expense E) Cash Accounts Receivable-A. Hopkins 2,000 2,000

Explanation / Answer

correct option is "D"

In case of direct wirte off method ,ANy further recovery of bad debt expense written off earlier is reversed .

so entry is debit to cash and credit to bad debt expense /bad debt recoverable account

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