Hey fellow jeopardy contestants……If the allowance at 12/31 is $10,000 and based on the % aged items, you expect bad debt of $25,000, what are the entries to correct the net realizable value using the allowance method.
If I'm not mistaken – the aging method specifically values the allowance account and therefore you would have to add an additional 15,000 to the account to get to the allowance per the aging method.
Income statement has $300,000 in depreciation and tax return has $500,000 in depreciation in year 3. Also, income statement includes $50,000 in income from municipalities. Enacted tax rate of 30%. What is the deferred tax expense for year 3?
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