Under the allowance method,if a customer makes payment on a receivable that has already been written off,the company needs to reverse the write-off to the Allowance for Bad Debts account.

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This is true. When a customer makes a payment on a previously written-off receivable, the write-off needs to be reversed by crediting the Allowance for Bad Debts account and debiting the Accounts Receivable account. This is because the previously written-off amount is no longer considered a bad debt and needs to be reinstated as a receivable.

Under the Allowance Method,if a Customer Makes Payment on a Receivable