Bad Debt Recovery
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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