Accounting question: What is bad debt reinstate ?
Question by ironwood9: Accounting question: What is bad debt reinstate ?
I know what allowance for bad debt, or write offs are, and I know that if you’re lucky enough to get payment on debt you already wrote off it is called “Bad debt recovery,” but what is bad debt reinstate ?
Best answer:
Answer by Mary D
Same thing as recovery. If you have written off the bad debt, you reinstate it if you ever get payment. I actually don’t use the term bad debt recovery, only bad debt reinstate when posting.
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