Question

define bad debts recovered​

Answer 1

$\huge\bold\red{Hello}$

Bad debt recovery is a payment received for a debt that was written off and considered uncollectible. All or part of the bad debt may be made in the form of a payment from a bankruptcy trustee or when the bank sells collateral. Bad debts must be reported to the IRS as a loss.

Answer 2

HEY MATE HERE IS YOUR ANSWER ✍

●Any debt receivable by an organisation may be categirised as bad or doubtful of recovery in case it is not paid on due date and even after passing of a suffiecient longer time after due date. On considering a debt as bad or doubtful of recovery, management may take a decision on maintaining a provision for bad debt in the books if acciunt keeping in view the realisability in the account in the view of management or Auditor. However despite categorising as bad, all efforts and steps are continued to be taken for recovery of the amount and subsequent recovery in the account where that debt is considered bad and provision has also been made, the recovery effected will be called recovery in bad debt account. In case account is written off in the account making 100% provision, when it is consideted to be loss account or no possibility of recovery is anticipated, subsequent recovery if effected will be called recovery in written off account.

hope this would be helpful

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