Joe Is a Customer of Bobble, Inc

question 137

Multiple Choice

Joe is a customer of Bobble, Inc. which uses the allowance method to account for uncollectible accounts. The company wrote off his account of $2,000 on March 15. On June 11, he sent in a payment of $800. What will Bobble, Inc. record first to reinstate his account?

• A)Debit Cash; credit Accounts Receivable/Joe.
• B)Debit Bad Debt Expense; credit Accounts Receivable/Joe.
• C)Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Joe.
• D)Debit Accounts Receivable/Joe; credit Allowance for Doubtful Accounts.