Recovery of Uncollectible Accounts Under Allowance Method / Approach
If the u ncollectible accounts which was previously written off, but now customer again is ready to sent payment to company then two Accounting Journal Entries are passed by the company. 1. For Creating Uncollectibele Accounts Again: In this step, as the customer is willing to pay, then he again becomes the customer of the company and company pass the following journal entry for Estimating Bad Debts Expense (it is the reversal of the previous entry of Writing Off Uncollectible Accounts ): You Can Also Read Out, “ Bad Debt Recovered Account ” Accounts Receivable a/c XXX Allowance for Doubtful Accounts a/c ...