Bad Debt Recovery

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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).