Ron, a cash basis taxpayer, sells his business accounts receivable of $100,000 to Mike for $70,000 (70 of the actual accounts receivable) Discuss the amount and classification of Ron 's bad debt deduction ...

Ron, a cash basis taxpayer, sells his business accounts receivable of $100,000 to Mike for $70,000 (70%

Question:

Ron, a cash basis taxpayer, sells his business of $100,000 to Mike for $70,000 (70% of the actual Discuss the amount and classification of Ron'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...