Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $69,000

Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $69,000 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.

No	Date	General Journal	Debit	Credit
1	Oct 30	Accounts receivable—P. Mooreselected answer correct	69,000selected answer correct	not attempted
		Bad debts expenseselected answer correct	not attempted	69,000selected answer correct
2	Oct 30	Cashselected answer correct	69,000selected answer correct	not attempted
		Accounts receivable—P. Mooreselected answer correct	not attempted	69,000selected answer correct

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6.

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,800 account of a customer, C. Green. On March 9, it receives a $1,300 payment from Green.
 Prepare the journal entry for January 31 and March 9. Assume no additional money is expected from Green for March 9.

No	Date	General Journal	Debit	Credit
1	Jan 31	Allowance for doubtful accountsselected answer correct	1,800selected answer correct	not attempted
		Accounts receivable—C. Greenselected answer correct	not attempted	1,800selected answer correct
2	Mar 09	Accounts receivable—C. Greenselected answer correct	1,300selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	1,300selected answer correct
3	Mar 09	Cashselected answer correct	1,300selected answer correct	not attempted
		Accounts receivable—C. Greenselected answer correct	not attempted	1,300