What Is Bad Debt Recovery?
Bad debt recovery means that after the account receivable is considered uncollectible and cancelled, it may be recovered after a period of time.
Bad debt collection
Right!
- Chinese name
- Bad debt collection
- Foreign name
- bad debt recovery
- Accounting
- Confirmed and resold
- Bad debt recovery means that after the account receivable is considered uncollectible and cancelled, it may be recovered after a period of time.
- Confirmed and resold
- (1) Accounting treatment of bad debt collection under the direct write-off method
- In this case, the cancelled entry will be reversed first, and then in the previous example of collection and payment, the bad debt of 18,000 yuan was cancelled in 1993, and one of the households improved their operations. At the end of 1993, the 2000 arrears of the arrears were returned:
- Borrow: Accounts Receivable-Customer Name 2000
- Loan: Administrative expenses-bad debt loss 2000
- Borrow: Bank Deposit 2000
- Loan: Accounts receivable-account name 2000
- The two entries are compiled to reflect the process of canceling and recovering bad debts, and also to reflect the credit status of customers.
- (II) Accounting treatment method of bad debt recovery under allowance method
- In order to reflect the entire process of bad debt collection, two entries are also required:
- Borrow: Accounts Receivable-Customer Name
- Loan: bad debt provision
- Borrow: bank deposit
- Credit: Accounts Receivable-Customer Name