Tag: Bad debt recovery
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How to Reverse an Accounts Receivable Written-off as Bad Debts Expense Account
CASE SCENARIO: A customer never paid the Invoice for $1,000. Wrote-off as bad debt expense account. Later paid $1,000. You will first need to check to the original entry to see how the debt was written off to the bad debts expense account. For example, wrote a journal to wrote off a debt of $1,000…