If the loss on an account receivable results from a customer's bankruptcy after the statement of financial statement date, the company only discloses this information in the notes to the financial statements.

Question

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If a customer declares bankruptcy after the financial statement date but before the financial statements are issued, it is considered an adjusting event. The company should adjust the financial statements to reflect the loss on the account receivable, not just disclose it in the notes.

If the Loss on an Account Receivable Results from a Customer's