Example of Bad Debt Recovered

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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 |...
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