Gideon Company Uses the Direct Write-Off Method of Accounting for Uncollectible

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:

A) $$\begin{array} { | l | r | r | } \hline \text { Accounts Receivable-A Hopkins } & 2,000 & \\\hline \text { Bad Debts Expense } & & 2,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Allowance for Doubtful Accounts } & 2,000 & \\\hline \text { Accounts Receivable-A Hopkins } & & 2,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Accounts Receivable-A Hopkins } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Bad Debts Expense } & 2,000 & \\\hline \text { Accourts Receivable-A Hopkins } & & 2,000 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable-A Hopkins } & & 2,000 \\\hline\end{array}$$

Correct Answer:

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