- "Just scales, just weights, just dry measures, and just liquid measures you shall have"
Short-Term Operating Assets: Cash and Receivables (Part H)
by
Charles Lamson
Subsequent Receivables
A company writes off an account receivable when it no longer expects to collect the amount due from a customer. However, the customer legally still owes money to the company and may eventually pay the amount due. A recovery occurs when a company receives payment on an account that it had previously written off. There are two steps to account for the subsequent recovery of accounts previously written off against the allowance account:
Example 9.8 illustrates accounting for the recovery of a write-off. *(Part 142) *GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 456-458* end |
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