HEY JOHN, We expensed a bad debt. Next year which is 20×9, the customer paid us the amount whom we written off as bad debt so this year we will make entry as Dr Cash Cr Irrecoverable debt income. This will decrease irrecoverable debt expense of 20×9?
I explain all this in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.