Broadway Inc

Multiple Choice

Broadway Inc.uses the direct write-off method.Previously,the company had written off the account of M.Douglas in full.Six months later,Broadway collected $600,the full amount due,from M.Douglas.How would Broadway Inc.record this transaction?

A) Debit Bad Debt Expense for $600 and credit Accounts Receivable-M.Douglas for $600.
B) Debit Accounts Receivable-M.Douglas for $600 and credit Bad Debt Expense for $600.
C) Debit Accounts Receivable-M.Douglas for $600,credit Bad Debt Expense for $600,debit Cash for $600,and credit Accounts Receivable-M.Douglas for $600.
D) Debit Accounts Receivable-M.Douglas for $600 and credit Bad Debt Expense for $600
E) Debit Cash for $600 and credit Accounts Receivable-M.Douglas for $600