When using the allowance method of accounting for uncollectible accounts, the recovery of a bad debt would be recorded as a debit to Cash and a credit to Bad Debts Expense.

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The recovery of a bad debt would be recorded as a debit to Cash and a credit to Accounts Receivable. The Bad Debts Expense would have already been recorded when the allowance was originally established.

When Using the Allowance Method of Accounting for Uncollectible Accounts