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As an accrual-basis taxpayer, the company recognized $57,500 in interest expense on the note ($750,000 * .08 x 11.5/12) and established an allowance account for
As an accrual-basis taxpayer, the company recognized $57,500 in interest expense on the note ($750,000 * .08 x 11.5/12) and established an allowance account for bad debts equal to two percent of sales
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