What is the recommended way to handle a customer's failed payment?

Recording the amount owed back to accounts receivable is the recommended way to handle a customer's failed payment. This approach allows you to accurately reflect the transaction in your accounting records. When a payment fails, it signifies that the customer still owes an amount for goods or services provided. By entering this amount into accounts receivable, you ensure that your financial records remain up-to-date and that you can follow up appropriately with the customer for collection.

This method maintains clarity in your financial statements and helps in tracking outstanding amounts owed to your business. It also allows for better cash flow management and financial planning since you will have visibility over what is owed to you. Properly accounting for these amounts ensures compliance with accounting principles, enabling you to manage customer debts effectively.

The other choices do not accurately address the implications of a failed payment, which is why they are less appropriate for this situation. They either do not keep accurate records of the outstanding debt or suggest actions that do not adequately address the necessity of tracking customer payments.