Banking
NPL Portfolio Sold to Debt Collector
Selling a portfolio of written-off loans to a third-party debt collection company.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash (Sale Proceeds) | Asset (+) | 500,000.00 | - |
| Recovery Income (NPL Sale) | Revenue (+) | - | 500,000.00 |
💡 Accountant's Note
Written-off loans are off-balance-sheet but tracked in shadow records for recovery. Sale proceeds are pure recovery income. Typical prices are 5-20 cents on the dollar depending on loan age, type, and collateral coverage.
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