Halsted Inc

Multiple Choice

Halsted Inc.uses the allowance method.Previously,the company had written off the account of S.Bullock in full.Nine months later,Halsted collected $1,700,the full amount due,from S.Bullock.How would Halsted Inc.record this transaction?

A) Debit Bad Debt Expense for $1,700 and credit Accounts Receivable-S.Bullock for $1,700.
B) Debit Accounts Receivable-S.Bullock for $1,700 and credit Bad Debt Expense for $1,700.
C) Debit Accounts Receivable-S.Bullock for $1,700,credit Bad Debt Expense for $1,700,debit Cash for $1,700,and credit Accounts Receivable-S.Bullock for $1,700.
D) Debit Accounts Receivable-S.Bullock for $1,700,credit Allowance for Doubtful Accounts for $1,700,debit Cash for $1,700,and credit Accounts Receivable-S.Bullock for $1,700.
E) Debit Cash for $1,700 and credit Accounts Receivable-S.Bullock for $1,700.