Accounts Receivable Bad Debt Expense Recovery (Direct Write Off & Allowance Method)

Accounting for accounts receivable debt recovery, collection of an account previously written off as bad debt using (1) direct write off method and (2) allowance method, for the (1) allowance method if an account written off (or charged off) is later collected, two entries are required (1) entry to reverse the original write off of that account and (2) entry to record the cash collection, for the direct write off method only one entry (1) entry to record the cash collection, example shows the original recording of the debt written for both the allowance method and direct write off method and the entries required to record the recovery of the debt (T accounts), detailed accounting explained by Allen Mursau