Association between bad debt and earning management

Nov 22, 2021
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Hong Kong
Hi all,

Recently I am doing an assignment related to earning management. And I found that on a company financial statement, they have recorded a "Bad debt written-off" as an expense, which is quite a huge amount.

So I am thinking, could the bad debt written off be recovered next year, and therefore inflate the earning of next year? Is that possible?

Please help me. Thanks.:)o_O


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