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 ?
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.
EBITDA for 2005 and 2004 included MCI bad debt recoveries of $3.
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.
Caveat: Reportable "other" items include: bank interest; business investment account interest; and bad debt recoveries (from debts previously written off).
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.
Net income in the period of $5,376,453, compared with $4,716,155 in the prior year second quarter, and was boosted by bad debt recoveries of $405,486 and a gain of $90,276 from waived accounts payable.
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 $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.
7 million, after excluding the MCI bad debt recoveries of $0.
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.
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).