A Customer with an Overdue Account of $450 Pays $150

question 58

Multiple Choice

A customer with an overdue account of $450 pays $150 on account. Which of the following is the most appropriate journal entry to record this transaction?

• A) \(\begin{array} { | r | r | r | }
• \hline \text { Cash } & 150 & \\
• \hline \text { Bad debts expense } & 300 & \\
• \hline \text { Accounts receivable } & & 450 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | l | r | r | }
• \hline { \text { Cash } } & 150 \\
• \hline \text { Notes receivable } & 300 & \\
• \hline \text { Accounts receivable } & & 450 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Accounts receivable } & 450 & \\
• \hline \text { Cash } & & 450 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 150 & \\
• \hline \text { Accounts receivable } & & 150 \\
• \hline
• \end{array}\)

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Definitions:

Cable Television

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