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Amos loaned James $2,000 in 2006 with the agreement that the loan would be repaid in two years. In 2010 James filed for bankruptcy and
Amos loaned James $2,000 in 2006 with the agreement that the loan would be repaid in two years. In 2010 James filed for bankruptcy and Amos learned that he could expect to receive $0.40 on the dollar. In 2011, final settlement was made and Amos received $500. Assuming the loan is a business bad debt, how would Amos account for the loan?
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