Under the allowance method for uncollectible accounts, when a year-end adjustment is made for estimated uncollectible accounts,

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When a year-end adjustment is made for estimated uncollectible accounts under the allowance method, the amount of accounts receivable reported on the balance sheet is reduced, which decreases total assets. Liabilities and net earnings are not affected by this adjustment.

Under the Allowance Method for Uncollectible Accounts, When a Year-End