General
Recovery of Written-Off Debt (Direct Reversal)
Reinstating a customer account and recording the cash received after a direct write-off occurred.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Asset (+) | 300.00 | - |
| Bad Debt Expense (Reversal) | Expense (-) | - | 300.00 |
| Cash | Asset (+) | 300.00 | - |
| Accounts Receivable | Asset (-) | - | 300.00 |
💡 Accountant's Note
This is a two-step process: First, you reverse the write-off to bring back the 'audit trail' of the customer, then you record the cash collection.
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QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.