LO.1 Sally is in the business of purchasing accounts receivable. Last year, Sally purchased an account receivable

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LO.1 Sally is in the business of purchasing accounts receivable. Last year, Sally purchased an account receivable with a face value of $80,000 for $60,000. During the current year, Sally settled the account, receiving $55,000. Determine the maximum amount of the bad debt deduction for Sally for the current year.

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