Question

An amount previously written off as bad debt is promised to be paid by the debtor. The promised amount will not be credited to __________Account. *​

Answer 1

Answer:

To record the bad debt entry in your books, debit your Bad Debts Expense account and credit your Accounts Receivable account. To record the bad debt recovery transaction, debit your Accounts Receivable account and credit your Bad Debts Expense account. Next, record the bad debt recovery transaction as income