Explain why a business, in determining net income from business for tax purposes, can deduct a reserve

Question:

Explain why a business, in determining net income from business for tax purposes, can deduct a reserve for potentially uncollectible but cannot deduct a reserve for anticipated sales returns.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...