How to record a credit card bill paid in cash given as a gift

I paid off my credit card bill in cash that was gifted to me. I can’t figure out the best way to record this in Goodbudget to bring my credit card amount down to the new total. I tried adding it as income and then creating a new transaction for an Account Transfer but it also increased my unallocated income which isn’t correct since I no longer have that money as I used it t pay off the card. Does any one have any suggestions?

You have to enter it as a Debt Transaction rather than an Account Transfer

This is correct—add the income to another account or create a cash account, then payoff the debt using the debt transaction function and be sure to use that same “cash” account for the payoff.
Alternatively, you could just Edit the debt account to $0 and not record the cash at all, then rename that line item to reflect how you paid it off.

Thank you for your assistance @Tiffany and @kschedler! I will give that a try.