Bad Debt Recovered Account

A company adopting either Allowance Method or Direct Write-Off Method, the adjusting entry for Bad Debt Recover is the same.
Example of Recovery of Bad Debts Previously Written Off
UFor Example, if one of our customer (Mr. A) initially failed to pay unpaid dues on time for the goods sold Rs. 30000, but after some time, i.e., 2 years he / she is able to pay the amount, then the recovery of bad debt is recorded in the book or journal of company as shown below:
Bad Debt Recovery Accounting Journal Entry
Cash a/c 300000
Bad Debts Recovered a/c 300000
(Old Unpaid Amount Received From Mr. A For Bad Debts Written Off)
As Bad Debts Recovered Account is a Revenue / Income for the company, so it is recorded in the Income Statement / Profit And Loss Account.
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