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:

The entry that should be made would be:
Bad Debts Expense $2,000
Account Receivable- A. Hopkins; credit $2,000
In direct write off, the company closed any residual data regarding the Bad receivables. Because of this, the direct-write off usually less actual in providing the bad-debts data compared to the alllowance method.

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AkshayG AkshayG · Answer 2 · 2019-10-30T11:03:58+01:00

The journal entry for the recovery of the bad debts is to debited allowance for doubtful accounts for $2,000 and credited the accounts receivable of Hopkins for $2,000.

Further Explanation:

Bad debts recovery:

Bad debts recovery is the amount of money that the company assume the debtor will not pay the amount, but it may recover in the future. Bad debts recovery is a type of profit that the company considers it as a loss.

Journal entry:

The journal entry refers to the method of recording the transactions of the business entity in the general journal. The transactions are recorded in accordance of debit and credit balances. All the transactions are recorded according to date and time.

Uncollectible accounts:

Uncollectible accounts are those account in which the company assumed that debtor will not pay back the amount of money. These accounts are treated as bad debts. Debtor are those individual, corporations and institutions who purchase the goods from the company but not yet paid the amount.

Journal entry for the recovery of bad debt:

Refer to table: (1) for journal entries

Learn more:

1. Learn more about journal entry of petty cash

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2. Learn more about journal entry for purchase

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3. Learn more about journal entry

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Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Bad debt recovery

Keywords:Gideon company, direct write off, method, uncollectible accounts, customer, Hopkins, full entries, customer, bad debts recovery, journal entry, $2,000.