Bad debts written off are verified with reference to relevant correspondence and proper authorisation.
- Ascertain the total amount lying as bad debts.
- Ensure that all recoveries of bad debts have been properly recorded in the books of account.
- Examine notification from the Court or from bankruptcy trustee. Letters from collecting agencies or from debtors should also be seen.
- Check Credit Manager’s file for the amount received and see that the said amount has been deposited into the bank promptly.
- Vouch acknowledgement receipts issued to debtors or trustees.
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