Petal, inc. is an accrual basis taxpayer. petal uses the aging approach to calculate the reserve for bad debts. during 2019, the following associated with bad debts occur . credit sales $400,000 collections on credit sales 250,000 amount added to the reserve 10,000 beginning balance in the reserve –0– identifiable bad debts during 2019 12,000 the amount of the deduction for bad debt expense for petal for 2019 is:
(a) $1
(b) $12000
(c) $22000
(d) $14
(e) none of these

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.