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:

BMR

Basal metabolic rate, which is the rate of energy expenditure per unit time by endothermic animals at rest.

ACTH

Adrenocorticotropic hormone, a hormone produced by the pituitary gland that stimulates the adrenal glands to release cortisol.

Premature Old Age

A condition in which an individual shows signs and experiences conditions associated with aging earlier than the expected chronological age.

Childhood

The period in a human's life from birth to puberty.