How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Linda_us Your Own Question

Linda_us
Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7291
Experience:  Post Graduate Diploma in Management (MBA)
19873544
Type Your Homework Question Here...
Linda_us is online now
A new question is answered every 9 seconds

Red Corporation incurred a $12,000 bad debt last year. Red

Resolved Question:

Red Corporation incurred a $12,000 bad debt last year. Red Corporation also had an $8,000 long-term capital gain last year. Red’s taxable income for last year was $28,000. During the current year, Red Corporation, unexpectedly, collected $5,000 on the debt. How should Red Corporation account for the $5,000 collection?



1. $0 income.

2. $5,000 income.

3. $4,000 income.

4. None of the above.

5. $3,000 income.
Submitted: 7 years ago.
Category: Homework
Expert:  Linda_us replied 7 years ago.
THIS ANSWER IS LOCKED!

You need to spend $3 to view this post. Add Funds to your account and buy credits.
Linda_us and other Homework Specialists are ready to help you