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 | l | l | } \hline \text { Allowance for Doubtril Accounts } & 2,000 & \\\hline \text { Accounts Receivable - A Hopkins } & & 2,000 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Accounts Receivable -A. Hopkins } & 2,000 & \\\hline \text { Bad Debts Expense } & & 2,000 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Cash } & 2,000 & \\\hline \text { Accounts Receivable -A. Hopkins } & & 2,000 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Accounts Receivable -A. Hopkins } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Bad Debts Expense } & 2,000 & \\\hline \text { Accounts Receivable -A. Hopkins } & & 2,000 \\\hline\end{array}

The Materiality Constraint, as Applied to Bad Debts

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