Final answer:
The journal entry for the collection of cash from an account receivable includes debiting Cash and crediting Accounts Receivable, reflecting the increase in the company's cash and the decrease in the amount owed by the customer.
Step-by-step explanation:
After a previously recorded sale to a customer on account, the journal entry that records the collection of cash in a later month includes a debit to Cash and a credit to Accounts Receivable. This reflects the increase in the company's cash balance and the decrease in the amount owed by the customer. When a payment is made with a credit card, the money is transferred immediately from the credit card company's checking account to the seller, which means the seller receives the cash right away. However, in the context of the original question, the transaction is different as the customer had purchased on account, not with a credit card, meaning they owed the seller directly, and the payment was likely collected later without involving a card.