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:

Mechanistic Organizations

Highly structured, formal organizations with clear hierarchies and rigid procedures, often compared to a machine in their operation.

Changing Environment

denotes the dynamic landscape organizations operate within, necessitating adaptability in strategies and practices to remain competitive.

Organizations

Structures or systems where individuals collectively work to achieve a common goal or set of goals.

Individual Resistance

Opposition or reluctance by a person to accept change, adhere to regulations, or adopt new ideas or methods.