Answer:
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.
Step-by-step 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.