Canada Booking Cash Receipts from Bankruptcy Proceeds as a Creditor

[accounter]

How do you book cash receipts from bankruptcy proceeds from one of our former customers? My situation is the bankruptcy filing by that customer happened 3 years ago and the trustee finalized the distribution of claims by the creditor just about now. We received some monies. When I checked the Allowance for Uncollectible Accounts, it was relegated to zero at the start of 2013. Is it still OK to book the cash under allowance method with these 2 JEs:

1) Debit Allowance for Uncollectible Accounts XXX.XX
Credit A/R XXX.XX

2) Debit Cash XXX.XX
Credit A/R XXX.XX

 

[kirby]

If you have any amount on your books as a receivable from that bankrupt customer, you post the cash from the trustee to that receivable first. Let's say you have written down the receivable from $2,000 to $500 then you receive $800. So the other $300 is other income.

Dr Cash $800
CR Acct receivable (500)
CR Other income (300)