Need help with c)

Regal Estate Ltd (REGAL) owns and operates a major real estate agency in Sydney. REGAL manages rental properties for owners of investment properties. REGAL usually charges a specified commission as a percentage of rent for these property management services. REGAL also sells properties for owners and conducts auctions for sellers. REGAL also usually charges a specified commission for these services. The company accountant Arthur is in the process of preparing the income tax return for the company for the 2021/22 income year, and seeks your advice on the following matters:

c) REGAL incurred $300,000 for the cost of bad debts written off (shortly after receiving confirmation that one of its debtors who owed REGAL $300,000 in unpaid commission for the sale of a property, had died, leaving no assets out of which the debt could be satisfied).

Advise REGAL and Arthur regarding the income tax implications arising from the above facts in relation to the 2021/22 income year. In your answer make sure you refer to any relevant cases, legislative provisions, tax rulings and principles of tax law.