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:

Tropical Rain Forest

A hot, moist biome found near the Earth's equator characterized by high biodiversity and dense canopy layers.

Coniferous Forest

A terrestrial biome dominated by coniferous trees, which are evergreens that have needle-shaped leaves and produce cones.

Evergreen Trees

Perennial plants that retain their leaves throughout the year, as opposed to deciduous trees that shed their leaves seasonally.

Temperate Deciduous Forest

A biome characterized by four seasons, where trees lose their leaves in winter, and it supports a wide range of biodiversity.