Bad debt recovery
In accounting, bad debt recovery means cash collected on a receivable already written off. Under GAAP it is recorded when received: reinstate the receivable against the allowance, then apply the cash. For tax, recovering an amount previously deducted is generally income.
Authority: ASC 326-20-35-8 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- revenue
- reversal
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Receivables
Defined in Lexicon. This page is generated from that document, so the two can't disagree.