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:

Premises

Statements or ideas that form the basis for a reasonable conclusion or the starting point for a logical argument.

Conclusion Indicator

Words or phrases used in argumentation to signal that a conclusion is being drawn, such as "therefore" or "thus."

Thus

A term used to introduce a logical conclusion or result from the preceding argument or statement.

Argumentation

The process of constructing and presenting arguments, involving reasoning and evidence, to persuade or inform others in a discussion or debate.