During 2020, Leslie's Boutique wrote off $13,000 in accounts receivable as uncollectible. At the end of this year, the accounts receivable balance was $256,400. Based on past experience, it is expected that 4 percent of these accounts will prove uncollectible. In its 2019 tax return, Leslie's Boutique had deducted a reserve for bad debts of $12,300. By what amount will the 2020 net business income of Leslie's Boutique be increased or decreased by the preceding information with respect to bad debts?

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The Answer of During 2020, Leslie's Boutique wrote off $13,000 in accounts receivable as uncollectible. At the end of this year, the accounts receivable balance was $256,400. Based on past experience, it is expected that 4 percent of these accounts will prove uncollectible. In its 2019 tax return, Leslie's Boutique had deducted a reserve for bad debts of $12,300. By what amount will the 2020 net business income of Leslie's Boutique be increased or decreased by the preceding information with respect to bad debts?

During 2020, Leslie's Boutique Wrote Off $13,000 in Accounts Receivable