Business

Lamar Nolan

25 April, 12:47

In June 2012, after trying to collect a $1,200 receivable from Ed Bundy, the Grinch Company wrote off the amount as uncollectible. Two months later, Bundy sent a check for $600. Collection of the remaining $400 is doubtful. Assuming the Grinch Company uses the allowance method, which of the following entries should it make upon receipt of the $600 check?

A. Accounts Receivable 600 Allowance for Uncollectible Accounts 600 Cash 600 Accounts Receivable 600

B. Cash 600 Accounts Receivable 600

C. Accounts Receivable 1,200 Allowance for Uncollectible Accounts 1,200

D. Cash 1,200 Accounts Receivable 1,200