If an account receivable written off during the current year is subsequently collected during the current year, the write-off entry is reversed.

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If a written-off account receivable is subsequently collected during the same year, the write-off entry is reversed, and the amount is recorded as a collection of accounts receivable. This is because write-offs are considered temporary and subject to reversal if the company receives payment.

If an Account Receivable Written Off During the Current Year