A taxpayer is a plumbing supplies store that offers credit terms to some of its customers . On 30 June , accounts receivables were $ 50,000 . Of this amount , $ 20,000 was doubtful debts . No bad debts were written off in the accounting records during the income year . The director has signed a written document prepared by the company accountant on 29 June . This document authorised writing off a debt of $ 15,000 , which is more than six months overdue . The company is also having trouble locating another client that owes $ 5,000 . Determine the available deduction for ' bad debts ' in the income year . Explain your answer with reference to the relevant provisions of the ITAA97 , any case law and any guidance provided by the ATO .