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Recovery of bad debts

This topic has 2 replies, 3 voices, and was last updated 12 years ago by Anonymous.

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Posts
December 26, 2012 at 3:58 pm #22315
yantat
Member
- Topics: 14
- Replies: 6
May I know the correct ledger entry for recovery of bad debts previously written off?
December 26, 2012 at 5:47 pm #56725
arko
Member
- Topics: 1
- Replies: 1
Creating allowance:
IDE
Allowance
Writing off:
Allowance
A/R
Recovery:
Cash/A/R
Allowance
January 13, 2013 at 11:12 am #113100
Anonymous
Inactive
- Topics: 0
- Replies: 7
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 customer
Dr Irrecoverable Debts Expense (income & expense a/c)
Cr Trade Receivables (balance sheet)
Being the write off of the debt
Dr Cash (balance sheet)
Cr Irrecoverable Debts Expense (income & expense a/c)
Being the recovery of the debt
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