Final answer:
It is true that there should be correspondence in a client's file establishing the uncollectibility of their account. This documentation serves accounting and legal purposes, ensuring the decision to write off the debt is well-supported.
Step-by-step explanation:
The question pertains to the business practice concerning the documentation needed when dealing with uncollectible accounts. The statement in question - There should generally be correspondence in the client's file establishing the uncollectibility of their account - is true. When an account is deemed uncollectible, it is standard practice for a business to maintain thorough documentation of the efforts made to collect the debt and the reasons for its uncollectibility. This could include a series of correspondences, such as emails, letters, and call logs, which provide a paper trail and support the decision to write off the debt. The presence of these documents is critical for accounting purposes, as well as for legal protection in case the action is questioned or audited.