Accounts can be assigned to Bad Debt when all other means of collection have been exhausted and you no longer want to keep the balance of the account in the accounts receivable.  The account and dollar amounts are removed from the aged trial balance reports.  PiMS keeps the account for recovered funds that may be applied to the account in bad debt status. Accounts in bad debt are no longer tracked or placed on worklists. Accounts can be reinstated and added back to the aged trial balance with the outstanding current balance if necessary.