Recovery of Previously Written-Off Bad Debt Steps:

• Write-off entry debits irrecoverable debts expense (increases expense) and credits accounts receivable (reduces asset).
• Recovery reinstates receivable: debit accounts receivable, credit irrecoverable debts expense (reduces expense).
• Cash receipt: debit cash (increases asset), credit accounts receivable (reduces asset).
• Net entry: debit cash, credit irrecoverable debts expense.

Why A is correct:

• Double-entry bookkeeping requires debiting cash to record inflow and crediting irrecoverable debts expense to reverse prior write-off, reducing net expense per accrual accounting principles.

Why the others are wrong:

• B: Debits expense (increases it) and credits cash (decreases it), reversing the transaction effect incorrectly.
• C: Debits income account (debts recovered, decreases income) and credits cash (decreases asset), misstating both recovery and cash receipt.
• D: Identical to B, incorrectly increases expense and decreases cash.

Final answer: A