Final answer:
When a company receives a payment on a written off account, it is considered a recovery of bad debt. The company reverses the write-off and records the payment as a recovery of bad debt.
Step-by-step explanation:
When a company receives a payment on an account that has already been written off, it means that the company had previously deemed the account as uncollectible and removed it from its books as a bad debt expense. However, getting a payment on a written off account is considered as a recovery of a bad debt. The accounting treatment for this situation involves reversing the write-off and recording the payment as a recovery of bad debt.