When a specific bad debt which has already been written off is later collected sales revenue is increased by the amount of the recovery.

Question

Quizplus · Accepted Answer

When a specific bad debt that has already been written off is later collected, it does not increase sales revenue. Instead, it is recorded as a recovery on the bad debt, affecting the bad debt expense or allowance for doubtful accounts, not sales revenue.

When a Specific Bad Debt Which Has Already Been Written