Example of Bad Debt Recovered
Example of bad debts recovered:
The balance for Debtor A; RM 1,500 as at 1/1/2011.
On 15/3/2011, Debtor A could not be traced and was written off as bad debts.
On 20/10/2011, Debtor A repaid his debt by cheque for RM 1,500.
Accounting period ends on 31/12/2011.
|Date | | |JOURNAL |Debit (RM) |Credit (RM) |
|15/3/2011 |DR | |Bad debts expense | |1,500 | |
| | |CR | |Debtor A | |1,500 |
|20/10/2011 |DR | |Debtor A | |1,500 | |
| | |CR | |Bad debts recovered | |1,500 |
| |DR | |Bank | |1,500 | |
| | |CR | |Debtor A | |1,500 |
|31/12/2011 |DR | |P&L | |1,500 | |
| | |CR | |Bad debts expense | |1,500 |
| |DR | |Bad debts recovered | |1,500 | |
| | |CR | |P&L | |1,500 |
|Bad debts a/c
The balance for Debtor A; RM 1,500 as at 1/1/2011.
On 15/3/2011, Debtor A could not be traced and was written off as bad debts.
On 20/10/2011, Debtor A repaid his debt by cheque for RM 1,500.
Accounting period ends on 31/12/2011.
|Date | | |JOURNAL |Debit (RM) |Credit (RM) |
|15/3/2011 |DR | |Bad debts expense | |1,500 | |
| | |CR | |Debtor A | |1,500 |
|20/10/2011 |DR | |Debtor A | |1,500 | |
| | |CR | |Bad debts recovered | |1,500 |
| |DR | |Bank | |1,500 | |
| | |CR | |Debtor A | |1,500 |
|31/12/2011 |DR | |P&L | |1,500 | |
| | |CR | |Bad debts expense | |1,500 |
| |DR | |Bad debts recovered | |1,500 | |
| | |CR | |P&L | |1,500 |
|Bad debts a/c