Question

GK Company, a calendar year accrual basis taxpayer, made the following adjustments to its allowance for bad debts this year:
January 1 allowance for bad debts ………………………. $86,100
Actual write-offs of accounts receivable ………………… (77,300)
Addition to allowance at year-end ………………………. 90,000
December 31 allowance for bad debts …………………… $98,800
a. Compute GK’s bad debt expense for financial statement purposes.
b. Compute GK’s tax deduction for bad debts.


$1.99
Sales0
Views32
Comments0
  • CreatedNovember 03, 2015
  • Files Included
Post your question
5000