The collection of an account that had been previously written off under the allowance method for uncollectible accounts

A) increases net income in the period it is collected.
B) decreases net income in the period it is collected.
C) requires a correcting entry for the period in which the account was written off.
D) does not affect net income in the period it is collected.

When an account previously written off is collected under the allowance method, it requires reinstating the account and then collecting the cash, which affects the balance sheet accounts (Accounts Receivable and Allowance for Doubtful Accounts) but does not impact the income statement or net income, as the expense was recognized in the period the account was initially written off.