What is the entry for collected debts related to a previous year? Default: Cash $1,000 Customer $1,000 The case: Cash $,1000 ? $,1000

Cash A/C    Dr

Account receivableA/C

Recover of Bad Debt entry

1.  Cash Bebit $ 1000

     Bad Debt Recover Credit $ 1000 

After that transfer, bad debt recover Income Statement 

2. Bad Debt Recovered  Account Bedit $ 1000

    Profit and Loss Account Credit $ 1000

Dr: Bank :1000$

CR: Bad depts Recovered :1000$

Dr. Cash a/c $ 1,000    Cr. Retained Earning(Bad debts recov.) $ 1,ooo.oo

Dr Cash  $, 1000

Cr Bad Debts Recovered (income)  $, 1000

or as per ECL of IFRS 9 if practising 

BY, COSTOMER           1000

    ( ON ACCOUNT)

  TO, CASH                       1000