Steve operates a law practice and records revenues and expenses using the accrual method on...
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Accounting
Steve operates a law practice and records revenues and expenses using the accrual method on a calendar year basis. At the beginning of the year, Steve's firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Steve recorded bad debt expense of $23,000 leaving the year-end balance in the allowance account at $18,000. How much can Steve take as a bad debt deduction?
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