At the end of 2021, of accounts receivable of $100,000, a reserve for tax purposes of $20299 was deducted. During

At the end of 2021, of accounts receivable of $100,000, a reserve for tax purposes of $20299 was deducted. During

Question:

At the end of 2021, of accounts receivable of $100,000, a reserve for tax purposes of $20299 was deducted. During 2022 year, $2922 of accounts receivable were actually written off. At the end of 2022, the company expected $8395 to be uncollectible and deducted that amount as a reserve for tax purposes. Determine the nef effect of the reserve for doubtful debts.

Expert Answer:

Answer rating: 100% (QA)

To determine the net effect of the reserve for doubtful deb
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