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A company has high customer concentration, with a single customer accounting for 42% of revenue. What adjustments, if any, should be made to address this

A company has high customer concentration, with a single customer accounting for 42% of revenue. What adjustments, if any, should be made to address this issue?

  1. The amount of trade debtors should be reduced by a prescribed percentage.
  2. A general loss allowance for impairment of trade debtors' adjustment needs to be made.
  3. No adjustment is required.

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