I would like to discuss accounts receivable which are outstanding invoices that is money owed for products delivered or services rendered. On the balance sheet, it is recorded as an asset. To record sale to customer on account the journal entries (JEs) are as follows: Dr Accounts Receivable, Cr Revenue. The JEs when the cash is received is Dr Cash and Cr Accounts Receivable.

How do you think an account receivable that is written off as a bad debt can be recognized?