Neutral Wire Size

Neutral of a 240V 1-phase service feed can be sized as a smaller wire. The size must handle the current imbalance between the 2 legs.

https://sparkypedia.electricianu.com/are-we-allowed-to-reduce-the-size-of-neutral-conductors/#:~:text=Because%20the%20neutral%20conductor%20functions,neutral%20conductor%20for%20a%20feeder.

Is this the correct understanding:

1. Center tapped transformer has opposite phases on each side
2. Current cancels itselff out when each side is loaded equally
3. If each side is not loaded equally, then the center wire transfers only the unbalanced current - the balanced part of current cancels itself out.