In 2021, Kevin had total sales of $160,000, of which $65,000 were on account. On December 31, 2021, there are receivables of $42,000. He estimates that $4,000 of these receivables are doubtful of collection. Determine the affect of this transaction on the calculation of 2021 business income.?

Answer rating: 100% (QA)

The transaction described involves recognizing an allowance for doubtful accounts which affects the ... View the full answer