When using the allowance method, the collection of an account previously written off is recorded in the cash receipts journal only.

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When using the allowance method, the collection of an account previously written off is recorded by reversing the entry made at the time of the write-off, which involves debiting accounts receivable and crediting the allowance for doubtful accounts. This is typically recorded in the general journal or a specialized journal for adjustments, not just in the cash receipts journal.

When Using the Allowance Method, the Collection of an Account