Customer Jim Jacobs owed ABC Company $$500.$ On May $3,2024,$ ABC determined this account receivable to be uncollectible and wrote off the account. The company uses the direct write $-$ off method. On July $1,2024,$ ABC received a check for $$400$ from the customer. How should the July $1,2024$ transaction be recorded?

A$.$ Accounts Receivable $-$ J$.$ Jacobs

Bad Debt Revenue