902 Bad Debts Recovered
Additions/Deductions
Addition to Income
Synopsis
Account 902 is established to record late payments from over-aged accounts receivable, which have been written off as a “Bad Debt”.
Debits |
Credits |
|
|
Example 1
Record payment of $465 received for a bad check that had been written off in the previous year.
Journal: Cash Receipts
Entry: |
|
Debit |
Credit |
Account 201 |
Cash on Hand |
$465 |
|
Account 902 |
Bad Debts Recovered |
|
$465 |