Question

if debit written off as bad are recovered subsequently it should be credited to debtors Account do you agree??
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Answer 1

While journalizing for bad debts debtor's personal account is credited and bad debts account is debited because bad debts written off are treated as a loss to the business and now when they are recovered it is seen as a fresh gain.

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Answer 2

Explanation:

• Credited to bad debts recovered account

While journalizing for bad debts debtor's personal account is credited and bad debts account is debited because bad debts written off are treated as a loss to the business and now when they are recovered it is seen as a fresh gain.

If the original entry was instead a credit to accounts receivable and a debit to bad debt expense (the direct write-off method), then reverse this original entry. 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.

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