Final answer:
When a customer who owes money is deleted, their outstanding balance remains in the accounts receivable or accounts payable ledger until it is resolved. Deleting a customer only removes their information from the customer database and terminates any active agreements or contracts. Financial responsibilities are not absolved by deleting a customer.
Step-by-step explanation:
When a customer who owes money is deleted, the first thing that happens is that their outstanding balance will remain in the accounts receivable or accounts payable ledger. This is because deleting a customer does not automatically eliminate any existing debts or credits associated with their account. The remaining balance will need to be resolved separately, either by paying off the debt or receiving payment for any credits.
For example, if a customer owes $500 and is deleted, the $500 balance will still be recorded in the ledger until it is resolved.
Deleting a customer typically means removing their information from the customer database and terminating any active agreements or contracts. However, it is important to note that deleting a customer does not absolve them of any financial responsibilities they may have had with the business.