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 written off as uncollectible. However, on August 5, Murphy paid $80 of the amount previously written off. The entry to reinstate Jane Murphy's account would include:

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