What a receivables write-off changes
A write-off changes accounting records. It does not, by itself, determine whether a debt remains legally collectible. Settlement, release, discharge, limitation rules, and other law can separately affect the obligation.
Where an allowance has already been recognized, writing off a receivable generally reduces both the receivable and the allowance. It does not necessarily create a new expense at that moment.
An accounting example
Hypothetical example: A company has a $1,000 invoice and an adequate allowance for credit losses. An approved write-off removes the $1,000 receivable against that allowance. The exact journal entries depend on the accounting framework and policy.
Tracking a later recovery
If money is later received on a written-off account, reconcile it to the correct customer and original balance. Record the recovery under the applicable accounting policy and distinguish gross receipts from collection costs.
Maintain approvals, supporting evidence, and an audit trail. Accounting write-off timing, tax deductibility, credit reporting, and legal collection rights are separate questions; one date should not be reused for all four without review.
Accounting reference: Federal Reserve interagency guidance on credit loss allowances.