Since the Accounts Receivable account includes amounts from customers who probably will never pay their bills, it
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Since the Accounts Receivable account includes amounts from customers who probably will never pay their bills, it overstates the real asset value. Thus, if the Aird Company decreases its equity by $13,000, it must also [increase / decrease] its Accounts Receivable account by
$13,000. Otherwise, the equality of Assets 5 Liabilities 1 Equity will not be maintained.
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