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 pays his account in full to Solstice Company.
Required:
1. Record Solstice's entries to reflect recovery of this bad debt.
2. Record the reinstatement of the account previously written off.

1. Debit Cash account  $50,000

  Credit Accounts receivable  $50,000

  Being entries to reflect the recovery of debt previously written off.

2. Debit Accounts receivable $50,000

   Credit Bad debt expense  $50,000

Being entries top reinstate debt previously written off.

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible and may be written off.  

Using the direct write off method, to account for such receivables, debit bad debt expense and credit accounts receivable

Where a debit that had previously been determined to have gone bad gets settled, to reinstate the debt written off initially, debit accounts receivables and credit bad debt. Then to account for the collection, debit cash and credit accounts receivable.

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

answer; to open a new transaction, the user should type the code/0 along with a new transaction code, when done with that the user should press enter to open the transaction; good luck;