Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,900 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:

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Business

Adonis Benitez

6 October, 03:51

Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,900 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:

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First Mate · Answer 1

Allowance for Doubtful Accounts $2,900

To Accounts Receivable $2,900

(Being the written off amount is recorded)

Explanation:

The journal entry to record the write off of the account using allowance method is shown below:

On May 3

Allowance for Doubtful Accounts $2,900

To Accounts Receivable $2,900

(Being the written off amount is recorded)

For recording this we debited the allowance for doubtful accounts as it reduced the allowance and credited the account receivable as it decreased the assets so that the proper recording of the given transaction could be done