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On January 1, 20X2, Mr. X loaned an entrepreneur $25,000 at 5% annual interest. Mr. X also incurred loan registration fees of $750. In 20X5,
On January 1, 20X2, Mr. X loaned an entrepreneur $25,000 at 5% annual interest. Mr. X also incurred loan registration fees of $750. In 20X5, Mr. X setup a reserve for unpaid interest of $3,000 as he not received any interest or principal repayments due to financial hardships of the entrepreneur.
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In 20X5 Mr X can deduct the unpaid interest reserve of 3000 as a b...
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
