Bob Works for Brandon Corporation

question 29

Multiple Choice

Bob works for Brandon Corporation. Brandon reimburses Bob for the following expenses in 2017 but does not include the reimbursement in his income: $800 country club dues, $1,200 business meals at the country club, and $200 transportation costs to out-of-town meetings. What is Brandon Corporation's travel and entertainment deduction for these reimbursed expenses for 2017?

• A) $2,200
• B) $1,100
• C) $800
• D) $700

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Definitions:

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect, considered as a loss.

Bad Debt Expense

An income statement item reflecting the cost associated with the estimated uncollectible accounts receivable.

Allowance for Doubtful Accounts

An estimate of the amount of accounts receivable that may not be collected, recognized as a contra asset account.

Cash Realizable Value

The net amount of cash expected to be received from receivables, after accounting for allowances for doubtful accounts.