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.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi