Okay, first point of confusion: why would you use a washcloth (which is made of terrycloth squares for the most part) to wash dishes? A sponge or brush works twelve times better. Washcloths are for use in the shower, on the body, not on dishes.
Second point of confusion: The paper things are called paper towels.
Two points of confusion after reading the responses
Second point of confusion: The paper things are called paper towels.