Two year ago, Green Corporation, an accrual basis taxpayer, sold merchandise on credit to John, an individual. Green’s a

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Two year ago, Green Corporation, an accrual basis taxpayer, sold
merchandise on credit to John, an individual. Green’s account
receivable from John was $20,000. Last year, John filed for
bankruptcy and Green was notified that it could expect to receive
20 cents on the dollar. Accordingly, Green took a $16,000 bad debt
deduction on last year’s tax return. In June of the current year,
Green received a $6,000 payment from John in final settlement of
the debt. How should Green account for the payment in the current
year?