Never in the question does it explain that a dollar for dollar reduction upon the 50,000 residual based failure of a collection of AR. Are we just supposed to know that? Seem, unclear at best. If you read the question. I would seem the total 50,000 would be forfeited. I guess my concern is too often in these CPA questions there are assumptions made that the reader understand exactly what the question is asking but, like this example, it was not as clear at it may seem.