Question

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

Answer 1

Dr Allowance for Doubtful Accounts 2,000

Cr Accounts Receivable - A. Hopkins 2,000

Step-by-step explanation:

Preparation of the Journal entry that Gideon will makes in order to record the write off of the account on May 3

Based on the information given we were told that on May 3 the Company wrote off the amount of $2,000 a uncollectible account of its customer which was A. Hopkins, this means that the Journal entry will be recorded as:

May 3

Dr Allowance for Doubtful Accounts 2,000

Cr Accounts Receivable - A. Hopkins 2,000