Customer G B) C) D)

Customer G.Smith owed Stonehollow Electronics $125.On April 27,2018,Stonehollow determined this account receivable to be uncollectible and wrote off the account.The company uses the direct write-off method.On July 15,2018,Stonehollow received a check for $125 from the customer.How should the July 15,2018 transaction be recorded?

A) $$\begin{array} { | l | l | l | l | } \hline \text { July 15 } & \text { Cash } & 125 & \\\hline & \text { Accounts Receivable - G. Smith } & & 125 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | l | } \hline \text { July 15 } & \text { Accounts Receivable - G. Smith } & 125 & \\\hline & \text { Bad Debt Revenue } & & 125 \\\hline \text { July 15 } & \text { Cash } & 125 & \\\hline & \text { Accounts Receivable - G. Smith } & & 125 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | l | } \hline \text { July 15 } & \text { Cash } & 125 & \\\hline & \text { Bad Debt Expense } & & 125 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | l | } \hline \text { July 15 } & \text { Accounts Receivable - G. Smith } & 125 & \\\hline & \text { Bad Debt Expense } & & 125 \\\hline \text { July 15 } & \text { Cash } & 125 & \\\hline & \text { Accounts Receivable - G. Smith } & & 125 \\\hline\end{array}$$