Under the allowance method for uncollectible accounts, the recovery of an account receivable results in a credit to the Bad Debt Expense account.

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The recovery of an account receivable under the allowance method results in a debit to the Accounts Receivable account and a credit to the Allowance for Doubtful Accounts account. It does not affect the Bad Debt Expense account.

Under the Allowance Method for Uncollectible Accounts, the Recovery of an Account