Question

state the accounting treatment for recovery of bad debt previously written off ?? it is a 2 marks question​

Answer 1

Answer: Hey mate here is your answer

Explanation:

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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