Valpariso Company uses the allowance method to estimate uncollectible accounts. On November 20, 2018, Valpariso determined that the Nadal Company account, in the amount of $500, would be uncollectible. On December 27, 2018, Valpariso received $300 of the amount due from Nadal. What is the FIRST entry Valpariso should make to record this event?

a. Increase Accounts Receivable by $300 and increase the Allowance for Uncollectible account by $300.

b. Increase Cash by $300, Increase the Accounts Receivable by $200 and increase the Allowance for Uncollectible Accounts by $500.

c. Increase Cash by $300 and increase the Allowance for Uncollectible accounts by $300

d. Increase Cash by $300 and decrease Accounts Receivable by $300.

e. None of these answers are correct.

Valpariso Company uses the allowance method to estimate uncollectible accounts. On November 20, 2018, Valpariso determined that the Nadal Company account, in the amount of $500, would be uncollectible. On December 27, 2018, Valpariso received $300 of the amount due from Nadal. What is the SECOND entry Valpariso should make to record this event?

a. Increase Cash by $300 and increase the Allowance for Uncollectible accounts by $300

b. Increase Accounts Receivable for $300 and increase the Allowance for Uncollectible account for $300.

c. Increase Cash by $300 and decrease Accounts Receivable by $300.

d. None of these answers are correct.

e. Increase Cash for $300, Increase the Accounts Receivable by $200 and reduce the Allowance for Uncollectible Accounts for $500.