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Theo Corp. received a $1,700 cash payment from a customer after the customer's balance had been written off by Theo Corp. using the Allowance method.

Theo Corp. received a $1,700 cash payment from a customer after the customer's balance had been written off by Theo Corp. using the Allowance method. If recorded using two entries, the journal entries recorded for the recovery would include a debit to:

  • A.

    Allowance for Doubtful Accounts

  • B.

    Bad Debt Expense

  • C.

    Accounts Receivable

  • D.

    Sales Revenue

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