Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $50,000 of its accounts receivable from its customer P Moore. On October 30, P. Moore unexpectedly paid his account in full to Solstice company. Record Solstice's entries to reflect recovery of this bad debt

The entries to record the recovery are:

Dr  Accounts receivable               $50000

Cr Bad debt expense account                     $50000

Being reversal of bad debt written off now recovered

Dr Cash                                 $50000

Cr Accounts receivable                       $50000

Being receipt of cash from customer

Explanation:

In recording the bad recovery of $50000,the entries posted in respect of the bad debt written must first of all be reversed,thereafter, the $50000 receipt of cash is recorded.

The reversal entries would look like this:

Dr  Accounts receivable               $50000

Cr Bad debt expense account                     $50000

Being reversal of bad debt written off now recovered

In addition, the receipt of  cash is then recorded as follows:

Dr Cash                                 $50000

Cr Accounts receivable                       $50000

Being receipt of cash from customer

The impact of these entries on the accounts receivable overall is nil

Also, the impact on the income statement is also nil as an earlier expense of $50000 now being reversed by an income of the same amount.

explanation:

kool beans

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.