1.) XQP corporation expensed $50,000 of bad debts during the year. The activity in the allowance for doubtful accounts was$70,000Beginning BalanceBad Debt Accrued for the YearBad Debts Written OffEnding Balance$50,000$35,000$85,000What is the BOOK-TO-TAX difference of XQP Corp for bad debts?O A.SOO B.$15,000 UnfavorableOC. $35,000 UnfavorableO D. $50,000 UnfavorableO E. $85,000 Unfavorable

Book to tax difference is the temporary difference created on the accounting books due to…

1.) XQP corporation expensed $50,000 of bad debts during the year. The activity in the allowance for doubtful accounts was Beginning Balance Bad Debt Accrued for the Year Bad Debts Written Off Ending Balance What is the BOOK-TO-TAX difference of XQP Corp for bad debts? O A. $0 O B. $15,000 Unfavorable OC. $35,000 Unfavorable O D. $50,000 Unfavorable O E. $85,000 Unfavorable $70,000 $50,000 $35,000 $85,000

1.) XQP corporation expensed $50,000 of bad debts during the year. The activity in the allowance for doubtful accounts was Beginning Balance Bad Debt Accrued for the Year Bad Debts Written Off Ending Balance What is the BOOK-TO-TAX difference of XQP Corp for bad debts? O A. $0 O B. $15,000 Unfavorable OC. $35,000 Unfavorable O D. $50,000 Unfavorable O E. $85,000 Unfavorable $70,000 $50,000 $35,000 $85,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Flyer Company has provided the following information prior to any year-end bad debt adjustment: • Cash sales, $150,000• Credit sales, $450,000• Selling and administrative expenses, $110,000• Sales returns and allowances, $30,000• Gross profit, $290,000• Accounts receivable, $110,000• Sales discounts, $14,000• Allowance for doubtful accounts credit balance, $1,200Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. How much is Flyer's bad debt expense? Group of answer choices A)$7,950 b)$6,750 C)$5,550 D)$9,000 E)None of the above
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Godo Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000 Selling and administrative expenses, $119,000 Sales returns and allowances, $39,000 Gross profit, $499,000 Accounts receivable, $195,000 Sales discounts, $23,000 Allowance for doubtful accounts credit balance, $2,100 Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
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Michael Company uses the percent-of-sales method for estimating bad debts expense. The company's bad debt expense normally 4% of net credit sales which were $410,000 for the year. During the year $2,700 was written off. The Allowance for Bad Debts account had a beginning debit balance of $1,000. What is the net realizable value of receivables if Accounts Receivable has a balance of $300,000? ⒸA. $410,000 B. $287.300 OC. $279,900 D. $283,600
Related data of Jimin Company: Accounts receivable, beginning P395,200 Allowance for bad debts, beginning 8,500 Sales for the year 5,000,000 Collection 4,680,000 Percentage of Bad debts is 2% of sales How much is the Net realizable value?
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Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 1.00% of its annual credit sales of $608,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $304 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list
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