During 2018, Leslies Boutique wrote off $13,000 in accounts receivable as uncollectible. At the end of this
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During 2018, Leslie’s Boutique wrote off $13,000 in accounts receivable as uncollectible. At the end of this year, the accounts receivable balance was $256,400. Based on past experience, it is expected that 4 percent of these accounts will prove uncollectible. In its 2017 tax return, Leslie’s Boutique had deducted a reserve for bad debts of $12,300. By what amount will the 2018 net business income of Leslie’s Boutique be increased or decreased by the preceding information with respect to bad debts?
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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