| Accounting terms Accounting articles Accounting news |
Go back
| Accounting term: | Bad debt recovery |
| Definition: | An account that you "wrote-off" as not collectable, but that was later paid by the customer. When this happens, you must adjust your accounts. Your company's adjusting entries would look something like this: A debit to accounts receivable in the amount of $500 and a credit to allowance for bad debts in the amount of $500; and a debit to cash in the amount of $500 and a credit to accounts receivable in the amount of $500. |
| Related terms: | |
| Rate it: |
|
Accounting terms by letter:
0 comments so far (post your own)