Millie's Draperies Uses the Allowance Method of Recording Bad Debts

Multiple Choice

Millie's Draperies uses the allowance method of recording bad debts.On June 13,the $200 account balance of Jane Murphy was charged off.However,on August 5,Murphy paid $80 of the amount previously written off.The entry to record the payment from Murphy would include:

A) debit Accounts Receivable $80;credit Allowance for Doubtful Accounts $80
B) debit Accounts Receivable $200;credit Allowance for Doubtful Accounts $200
C) debit Allowance for Doubtful Accounts $80;credit Cash $80
D) debit Cash $80;credit Uncollectible Accounts Expense $80