A provision of 5% is made on debts that are overdue for more than 30 days except
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A provision of 5% is made on debts that are overdue for more than 30 days except for one debt which has been overdue for more than 12 months. A full provision has been made for this debt of $230,798. However, the receivables clerk failed to mail a legal claim to the client's correct address
The above provision for DD has been found in the income statement for accounting purposes. How much can we claim a deduction for the bad debts written off for taxation purposes? Also, keep in mind that Clertk failed to mail a legal claim.
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