Explain the add-back-new reserve

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Reference no: EM133927149

Problem

Reserve for Unpaid Amounts: In 2025, a business sells equipment for $200,000 (cost $140,000, gross profit $60,000). Payments: $50,000 in 2025, $50,000 in 2026, $50,000 in 2027, $50,000 in 2028. Get the instant assignment help. Calculate the reserve for 2025 and explain the add-back/new reserve for 2026.

Reference no: EM133927149

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