Manley operates a law practice on the accrual method and calendar year. At the beginning of the year, Manley's firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance of doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense this year?
A)$23,000
B)$3,000
C)$26,000
D)$5,000
E)$20,000

Question

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The Answer of Manley operates a law practice on the accrual method and calendar year. At the beginning of the year, Manley's firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance of doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense this year?
A)$23,000
B)$3,000
C)$26,000
D)$5,000
E)$20,000

Manley Operates a Law Practice on the Accrual Method and Calendar