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.

---

Definitions:

Laboratory Experiment

A controlled study conducted in a specially equipped environment where variables can be manipulated and outcomes measured.

Field Experiment

A study conducted in a real-world setting where the researcher manipulates one or more variables to observe the effect on a particular outcome.

Independent Variable

The factor in an experiment that is intentionally changed to observe its effect on the dependent variable.

Role Models

are individuals admired for their behaviors, qualities, or achievements, who serve as examples for others to emulate.