Manley Operates a Law Practice on the Accrual Method and Calendar

question 95

Multiple Choice

Manley operates a law practice on the accrual method and calendar year. At the beginning of the year, Manley's firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance of doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense this year?

• A)$23,000
• B)$3,000
• C)$26,000
• D)$5,000
• E)$20,000

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Definitions:

Vaginosis

A condition characterized by an imbalance of the naturally occurring bacteria in the vagina, leading to symptoms like discharge, odor, and irritation.

Candidiasis

A fungal infection caused by Candida yeasts, commonly affecting areas like the mouth, throat, and genitals, known as thrush when occurring in the mouth.

Edema

A medical condition characterized by the accumulation of excess fluid in body tissues, causing swelling.