Bad Debts Recovered
Financial Accounting SSS1 Third Term
WEEK 5
Bad Debts Recovered
Performance Objectives
- What are Bad Debts
Content
Sometimes, it so happens that the bad debts previously written off get recovered. When this happens, the amount so recovered is again and hence credited to the bad debt recovered account. Such recovered debts are known as Bad Debt Recovered. When bad debts are recovered from debtors after closing off a financial year, such recovered debt will be shown as income.
Bad Debt Recovered can also be defined as debt from a loan, credit line/accounts receivable which is recovered either in whole or in part after it has been written off or classified as a bad debt. Because it generally generates a loss when it is written off, a bad debt recovery usually produces income.
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- Preparation of Bank Reconciliation Account
- Preparation of Bank Reconciliation when there is Bank Overdraft
- End of Year Adjustments in Profit and Loss Account
- Provision for bad Debt and Provision for Discount Allowed and Received
- Bad Debts Recovered
- Depletion of Fixed Assets
- Straight Line and Reducing Balance Methods of Depreciation
- Treatment of Depreciation in Profit and Loss Accounts and Balance Sheet
- Chapters 8
- Category SSS1
- Author ClassNotes Edu
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