Allowance of doubtful accounts reveals

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An analysis of the Allowance of Doubtful Accounts reveals:

Balance, 01/01/17………………………………………………………    $ 15,682

2017 Transactions—

Provision for bad debts…………………………………………………          3,485

Recoveries on bad debts………………………………………………..          (740)

Accounts written off as uncollectible…………………………………..         (1,220)

            Balance, 12/31/17………………………………………………   $ 17,207

(Can the Reserve Method be used for Federal income tax purposes? How do we treat “Recoveries”? What amount is deductible in 2017? What amount goes on Schedule M? This will be a good challenge to you.)

Reference no: EM132154551

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