A customer owes \$2,500 but pays only \$1,000. How should the company adjust its accounts receivable?

Debit Cash \$1,000; Credit Revenue \$1,000.

Debit Cash \$2,500; Credit Accounts Receivable \$2,500.

Debit Accounts Receivable \$1,000; Credit Cash \$1,000. Remaining balance in Accounts Receivable is \$1,500.

Debit Cash \$1,000; Credit Accounts Receivable \$1,000. Remaining balance in Accounts Receivable is \$1,500.