Bob owns a collection agency He purchases uncollected accounts receivable from other businesses at 60 of their face value and then attempts to collect these accounts During the current year, Bob collected $60,000 on an account with a face value of $80,000 Determine the amount of Bob 's bad debt ded...

Bob owns a collection agency. He purchases uncollected accounts receivable from other businesses at 60% of their

Question:

Bob owns a collection agency. He purchases uncollected from other businesses at 60% of their and then attempts to collect these accounts. During the current year, Bob collected $60,000 on an account with a of $80,000. Determine the amount of Bob's bad debt deduction.
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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...