Question

QS 9-3 Recovering a bad debt LO P1 Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $67,000 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 View transaction list Journal entry worksheet < 1 2 Record the reinstatement of the account previously written off. Note: Enter debits before credits Date General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Ans.	Date	General Journal	Debit	Credit
	Oct-30	Accounts receivable - P. Moore	$67,000
		Bad debts expenses		$67,000
		(To reinstate the previously write off accounts)
	Oct-30	Cash	$67,000
		Accounts receivable - P. Moore		$67,000
		(To record the recovery of bad debts)