Replies to post #10370 on Labwire Inc (LBWR)

[Bill_Investor]

Typically, bad debt is booked to record a reserve for uncollectible accounts. Per the notes, the reserve was $5,600.

Now, if an uncollectible account is subsequently collected, an adjustment is typically made to the reserve and NOT revenue.

Further, if the reserve was $5,600, then where does this $208,000 come from?

Does not make sense.