Question

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:

Answer 1

Explanation:

The Journal Entry for 3 May is as shown below:-

Allowance for Doubtful Accounts Dr,             $2,000  

               To Accounts Receivable A. Hopkins               $2,000

(Being the write off is recorded)

Therefore for passing the journal entry we simply debited allowance for doubtful account and credited the accounts receivable)