Question: GK Company a calendar year accrual basis taxpayer made the

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.

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  • CreatedNovember 03, 2015
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