Fire damaged stock valuation

Fire damaged £1,000,000 of stock at cost
An insuramce claim was made by the business. The solicitors have advised the directors of the business that it is now probable that they will receive compensation in the region of £500,000. Therefore the directors have included £500,000 in recievables. The fire damaged stock of £1,000,000 remains in the stock figure at the year end as the Directors believe they may still be able to use some of the damaged stock in production once they have carried out rectification work.

I am struggling with this question, what would be the double entry to correct this mistake of including £500,000 as receivables?
And how would stock the stock be valued and what is the double entry for this?

Help will be very much appreciated Thank You