James Is in the Business of Debt Collection

question 55

True/False

James is in the business of debt collection. He purchased a $20,000 account receivable from Green Corporation for $15,000. During the year, James collected $17,000 in final settlement of the account. James can take a $2,000 bad debt deduction in the current year.

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Definitions:

Defamation

The act of making false statements about someone that harm their reputation.

Privilege

In tort law, the ability to act contrary to another person’s right without that person’s having legal redress for such acts. Privilege may be raised as a defense to defamation.

Negative Review

A critical evaluation or comment, typically public, expressing dissatisfaction with a product or service.

Slander Of Quality

The publication of false information about another’s product, alleging that it is not what its seller claims; also called trade libel.