If an account is collected after having been previously written off,

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If an account is collected after having been previously written off, it means that the company had previously recognized the loss on the account and written it off as uncollectible, debiting the allowance for doubtful accounts and crediting accounts receivable. When the account is collected, it will result in a debit to accounts receivable to reflect the receipt of the payment, and a credit to the allowance for doubtful accounts to reverse the previous write-off. The income statement will also be affected as bad debt expense will decrease, and the statement of financial position will be affected as assets and equity will increase. Therefore, both the income statement and statement of financial position accounts will be affected.

If an Account Is Collected After Having Been Previously Written