Irrecoverable debts recovered Flashcards
1
Q
What are irrecoverable debts?
A
Amounts owed by customers that are written off as they are unlikely to be received.
2
Q
What is an irrecoverable debt recovered?
A
When a former trade receivable, who was previously written off, makes a payment.
3
Q
What is the double entry for an irrecoverable debt recovered?
A
Debit ‘bank account’
Credit ‘Irrecoverable debts recovered’ added after gross profit in income statement
