Under the allowance method, the recovery of an account previously written off results in an increase in income.

Name: Under the allowance method, the recovery of an account previously written off results in an increase in income.
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Under the allowance method, the recovery of an account previously written off does not affect income because the write-off and recovery are recorded against the allowance for doubtful accounts, not directly in the income statement.

Under the Allowance Method, the Recovery of an Account Previously