I need help fixing hole in wall?

my parents have a door stop in the wall near the front door. the door stop has been there for over 25 years. the door stop got pushed into the wall and made a hole, the door stop didn't go all the way in. I was going to pull the piece of the wall back out and leave it where it originally was before the damage. then i was going to take the door stop off and plaster the area where the damage was. Is the a good idea or is there a better way to fix the damage. The wall is drywall