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journal entry for bad debt recover


Amrita 8th May, 2020
Answer (1)
ANUJA 8th May, 2020

Hello

Bad debts are the losses to the company so they are on the debit side

But Bad debts recovered are the income to the company as we had recovered the bad debts

So according to accounting golden rule.

Debit the expenses and losses

Credit the incomes and gains

Hence the journal entry will be

Bank/Cash A/c.            Dr

To Bad debts recovered A/c

Hope this helps

Feel free to ask your doubts in comment section


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