How should payment be recorded

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Question - Assume a company writes off the Account Receivable balance of $1,500 from Goofy Inc. A few months later it receives a cheque in the mail for $500 from Goofy Inc. How should this $500 payment be recorded?

a. It should not be recorded and returned to Wally Inc

b. It should be recorded as a credit to Allowance for Doubtful Accounts

c. It should be recorded as a credit to Accounts Payable

d. It should be recorded as a credit to Bad Debts Expense

Reference no: EM132765316

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