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.
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What's more, rental payment history has proven to be an effective bad-debt recovery tool for apartment companies that share outstanding balances and write-offs.
2 million (two cents per share after taxes) related to a bad-debt recovery and pretax income of $1.
Total operating expenses decreased by more than 17% in the first quarter of fiscal 2008 compared with the same quarter last year, primarily as a result of spending controls, a bad-debt recovery, and cost-cutting initiatives the Company put into place in prior quarters.
Operating income was impacted by the LIFO-related income, the bad-debt recovery and the prior year restructuring charge.
The fiscal 2005 earnings include a previously disclosed after-tax bad-debt recovery of $722,000 or $0.