Southwest Company uses the allowance method of recording credit losses. In November 2016, Southwest wrote off the $3,600 account of Gamma Company. In January 2017, Gamma paid the $3,600.
The entry or entries to record the payment is/are:
Select one:
A.
Cash
3,600
Recoveries of Accounts Written Off
3,600
B.
Accounts Receivable--Gamma Co.
3,600
Allowance for Doubtful Accounts
3,600
Cash
3,600
Accounts Receivable--Gamma Co.
3,600
C.
Accounts Receivable--Gamma Co.
3,600
Bad Debts Expense
3,600
Cash
3,600
Accounts Receivable--Gamma Co.
3,600
D.
Allowance for Doubtful Accounts
3,600
Accounts Receivable--Gamma Co.
3,600
B.
Accounts Receivable--Gamma Co.
3,600
Allowance for Doubtful Accounts
3,600
Cash
3,600
Accounts Receivable--Gamma Co.
3,600
Business