If a recovery of a written-off account is made in the same year using the allowance method,the Bad Debts Recovered account would be used.

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Under the allowance method, when a recovery of a written-off account occurs, the entry is to debit Accounts Receivable and credit Allowance for Doubtful Accounts to reinstate the account, then debit Cash and credit Accounts Receivable to record the collection. There is no use of a Bad Debts Recovered account in this process.

If a Recovery of a Written-Off Account Is Made in the Same