The adjusting entry for uncollectible accounts reduces the balance of the Accounts Receivable account.

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The adjusting entry for uncollectible accounts typically involves debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts, which does not directly reduce the balance of the Accounts Receivable account but rather establishes a contra account to account for potential future losses from uncollectible accounts.

The Adjusting Entry for Uncollectible Accounts Reduces the Balance of the Accounts