# Bad debt recovery

> Bad debt recovery — 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.

Source: https://lopifi.com/glossary/bad-debt-recovery
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- revenue
- reversal

- **Category:** Receivables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)