What Is the Difference Between Undoing a Closure and Undoing a Bad Debt?

Both actions restore the custody to its previous state, but they differ in their financial behavior:

• Undo Closure (Reopen): May not create or delete any journal entries if the custody was “Settled” before closure, or deletes the cash return journal entry if it was “Open.”
• Undo Bad Debt: Always deletes the journal entries that were created when the bad debt was recorded and restores the balance back to the employee custody account.