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4 July, 22:04

As a customer's account receivable balance is specifically written-off due to its being uncollectible, what is the effect on the company's total assets amount?

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  1. 4 July, 22:12
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    A decrease or reduction

    Explanation:

    The account receivable balance represents the amount yet to be collected from a customer after revenue has been earned. It is an asset, a current asset in the balance sheet.

    As such, when an amount becomes uncollectible, it is written off to the p/l as an expense resulting in a reduction in the accounts receivables and thus a reduction in the company's total asset amount.
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