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Manley operates a law practice on the accrual method and calendar year. At the beginning of the year, Manleys firm had an allowance for doubtful
Manley operates a law practice on the accrual method and calendar year. At the beginning of the year, Manley’s firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Manley recorded bad debt expense of $23,000 on his income statement and the balance of the allowance for doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense this year?
A) $23, 00
B) $3,000
C) $26,000
D) $5,000
E) $20,000Step by Step Solution
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