What happens to the accounts receivable when an uncollectible account is written off?

When an uncollectible account is written off, the accounts receivable is decreased. This process involves removing the specific account receivable amount from the balance sheet, reflecting that the company no longer expects to receive payment from that particular debtor. Writing off an uncollectible account is an adjustment that accurately portrays the company's financial position by acknowledging the loss associated with the receivable.

The decrease in accounts receivable ensures that the financial statements present a more accurate picture of what the company can realistically expect to collect. This accounting treatment is part of maintaining clear and truthful financial records, thus adhering to proper accounting principles.