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Bob owns a collection agency. He purchases uncollected accounts receivables from other businesses at 60% of their face value and then attempts to collect these
Bob owns a collection agency. He purchases uncollected accounts receivables from other businesses at 60% of their face value and then attempts to collect these accounts. During the current year, Bob collected $60,000 on an account with a face value of $80,000. Determine the amount of Bob's bad debt deduction.
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