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Chapter 10

2.2 Accounting for irrecoverable debts recovered

It is possible that debts previously written off may subsequently be paid.

The entries made to write off the debt as an expense must be reversed before
recording the receipt of the payment from the customer.

Step

Step 1 Step 2
2

Reinstate the debt Allocate payment

Debit – Receivables Debit – Bank
account account
Credit – Credit –

Irrecoverable debts Receivables
expense account account

Tutor notes guidance – discussion points

Take students through TYU 2 from Chapter 11 of the Study Text.

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