Accountancy, asked by sauravsingh39, 1 year ago

what do you mean by bad debts recovered​

Answers

Answered by Hemantg111
3

Answer:

Bad debt recovery is a payment received for a debt that was written off and considered uncollectible. The receivable may come in the form of a loan, credit line, or any other accounts receivable. Because it generally generates a loss when it is written off, bad debt recovery usually produces income.

Answered by ParidhiAgrawal
1

Answer:

A debt incurred from a loan, a credit line, or an accounts receivable that is recovered either in whole or in part after it had been written off or classified by the lender as a bad debt. This recovery can often actually produce income because it will typically generate a loss when it is written off by the lender.

Bad debt recovery. A bad debt recovery is a payment received after it has been designated as uncollectible. ... 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.

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