ABC Corporation has accounts receivable of $145,000 in 2021. It has also determined that the allowance...

 

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ABC Corporation has accounts receivable of $145,000 in 2021. It has also determined that the allowance for doubtful accounts is $4,000 for the year (a reasonable amount). During 2022, it records the following in the books: Write-off of accounts receivable $2,500 and reinstatement of accounts previously written off $3.000. For the year ended 2022, it determines that the allowance for doubtful accounts should be $5,000 (a reasonable amount). What is the deduction of the reserve for doubtful debts in 2022 for tax purposes? Multiple Choice Not allowed $500 $2.500 $4.500 ABC Corporation has accounts receivable of $145,000 in 2021. It has also determined that the allowance for doubtful accounts is $4,000 for the year (a reasonable amount). During 2022, it records the following in the books: Write-off of accounts receivable $2,500 and reinstatement of accounts previously written off $3.000. For the year ended 2022, it determines that the allowance for doubtful accounts should be $5,000 (a reasonable amount). What is the deduction of the reserve for doubtful debts in 2022 for tax purposes? Multiple Choice Not allowed $500 $2.500 $4.500

Answer rating: 100% (QA)

The answer is not allowed Doubtful debt is a receiv... View the full answer