Bad debts recovered which statement shows in
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✌❤The accounting for a bad debt recovery is a two-step process, as follows:❤✌
- ❤Reverse the original recordation of a bad debt.❤
- ❤Record the cash receipt from the bad debt recovery❤
- ❤which is a debit to the cash account and a credit to the accounts receivable asset account.❤
✌❤PIYUSH_SHARMA ❤✌
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When you have bad debt, your business balance sheet reflects the loss. Update your balance sheet when you recover bad debt. And, increase your business's assets on your balance sheet. Your income statement displays your business's income and expenses.
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