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) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 150 & \\
• \hline \text { Accounts receivable } & & 150 \\
• \hline
• \end{array}\)

---

Definitions:

Experimental

Pertaining to an investigational method that involves manipulating variables to study cause and effect relationships.

Soft Drink

A non-alcoholic beverage, typically carbonated and flavored.

Packaging

The process and materials used to protect, transport, and present goods.

Preferred

A term often used to indicate a choice or preference among various options.