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In 2018, UBC deducted a reserve for doubtful debts of $12,000. During 2019, they had actual write-offs of $12,500 and recoveries of previously written off
In 2018, UBC deducted a reserve for doubtful debts of $12,000. During 2019, they had actual write-offs of $12,500 and recoveries of previously written off debts of $1,500. At the end of 2019, they deducted a reserve for doubtful debts of $14,000.
Calculate the net impact on the business income of UBC given the above information with respect to bad debts.
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