Under the allowance method,when a company collects cash from an account previously written off,total assets increase.Collecting cash from an account previously written off has no effect on total assets.

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When a company collects cash from an account previously written off, there is an increase in cash and a decrease in the allowance for doubtful accounts, resulting in no net effect on total assets.

Under the Allowance Method,when a Company Collects Cash from an Account