Which action is performed to remove an uncollectible account from the accounts receivable?

The action of writing off an uncollectible account from accounts receivable is a standard practice in accounting. When a business determines that a customer account is unlikely to be collected due to reasons such as bankruptcy or failure to pay, it proceeds to remove that account from its financial records through a write-off. This process effectively reduces the total accounts receivable on the balance sheet, reflecting a more accurate financial position.

By writing off the account, the business recognizes that it has incurred a loss and adjusts its financial statements accordingly. This also helps to enhance the accuracy of credit management practices, as it clears out accounts that are unlikely to generate revenue. The write-off does not erase the debt itself; rather, it recognizes the reality that the company will no longer pursue collection.

The other options serve different functions within the accounting framework. Adjustments may be made to correct errors or change estimates but do not specifically pertain to uncollectibles. Reconciliation involves ensuring that two sets of records (like bank statements and internal accounts) agree, which is unrelated to the treatment of uncollectible accounts. Deferral concerns the postponement of expense recognition or revenue reporting until a later date, which also does not apply to the process of removing uncollectible accounts from receiv