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May I know the correct ledger entry for recovery of bad debts previously written off?
Creating allowance:
IDE
AllowanceWriting off:
Allowance
A/RRecovery:
Cash/A/R
Allowance- Topics: 0
- Replies: 7
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I disagree. I think it should be:
Dr Trade Receivables (balance sheet)
Cr Sales (income & expense a/c)
Being sale made on credit to a customerDr Irrecoverable Debts Expense (income & expense a/c)
Cr Trade Receivables (balance sheet)
Being the write off of the debtDr Cash (balance sheet)
Cr Irrecoverable Debts Expense (income & expense a/c)
Being the recovery of the debt
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