Bad Debt Recovery

(redirected from Bad Debt Recoveries)

Bad Debt Recovery

Partial or whole payment of a debt previously thought to be uncollectible. For example, if a credit card has been written off but then the credit card company receives a payment, this is considered bad debt recovery. This reduces a company's accounts receivable and generally increases income. Bad debt recovery may come from the receipt of a regular payment or from some other source, such as the sale of a loan's collateral.
References in periodicals archive ?
1% in the first half of 2011, mainly due to a one-off gain on bad debt recoveries.
narrowed its first-quarter loss in 2004 over 2003 results, attributing the improvement in earnings to higher sales, bad debt recoveries, spending cuts and improved factory efficiencies.
Taxpayers often deduct an amount in one year and recover it in a subsequent year (for example, state income tax refunds, bad debt recoveries and medical expense and casualty loss reimbursements).
Net cash used in operating activities was approximately $411,000 for the three months ended December 31, 2012 as a result of payment of selling, general and administrative expenses, slightly offset by equity proceeds and bad debt recoveries.
The decrease in cash is primarily a result of selling, general and administrative outflows of $2,948,000 offset partially by net income tax receipts from the Canada Revenue Agency and the Internal Revenue Service of $1,348,000, interest income and bad debt recoveries of $1,151,000, and equity and warrant proceeds of $328,000.
Net cash used in operating activities was approximately $1,114,000 for the nine months ended June 30, 2012 as a result of selling, general and administrative expenses, partially offset by bad debt recoveries and equity proceeds.
Net cash used in operating activities was approximately $685,000 for the six months ended March 31, 2012 as a result of selling, general and administrative expenses, partially offset by bad debt recoveries and equity proceeds.
Net cash used in operating activities was approximately $154,000 for the three months ended December 31, 2011 as a result of selling, general and administrative expenses, partially offset by bad debt recoveries.
The Company realized bad debt recoveries of $54,000 and $575,000 during the first quarter of 2006 and 2005, respectively, which reduced administrative and general expenses.
Bad debt recoveries of $54,000 and $576,000 were realized in the first quarter of 2006 and 2005, respectively.
AND SUBSIDIARIES FOR THE THREE MONTHS ENDED (In thousands) (UNAUDITED) March 31, March 31, 2006 2005 NET SALES $24,575 $18,835 OPERATING INCOME * 1,042 1,057 OTHER EXPENSE (113) (101) INCOME BEFORE INCOME TAXES 929 956 PROVISION FOR INCOME TAXES 316 - NET INCOME $613 $956 * Includes bad debt recoveries of $54 in the first quarter of 2006 and $576 in the first quarter of 2005.
The prior year quarterly profit included significant bad debt recoveries and a $184,000 gain on sale of AmeriQuest's Asian subsidiaries .