When bad debts recoveries occur,the write-off should be reversed and the collection handled as a normal receipt on account.

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When bad debts recoveries occur, the write-off should be reversed, and the collection should be handled as a normal receipt on account. This is because the recovered amount is no longer considered a bad debt, and therefore, the write-off entry needs to be reversed. The amount should then be recorded as a receipt on account, just like any other customer payment.

When Bad Debts Recoveries Occur,the Write-Off Should Be Reversed and the Collection