17. Recovery of bad debt written off by a taxpayer: 1) P20,000 from accounts written off in a year which had a net income of P200,000 before the write-off (write-dff for the year was P20,000) 2) P5,000 from accounts written off in a year which had a net loss before written off in a year, which had a net loss before write off of P36,000 (write-off for the year was P5,000). The income from the bad debt recovery is: a. PO b. P20,000 P25.000

17. Recovery of bad debt written off by a taxpayer: 1) P20,000 from accounts written off in a year which had a net income of P200,000 before the write-off (write-dff for the year was P20,000) 2) P5,000 from accounts written off in a year which had a net loss before written off in a year, which had a net loss before write off of P36,000 (write-off for the year was P5,000). The income from the bad debt recovery is: a. PO b. P20,000 P25.000

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

17. Recovery of bad debt written off by a taxpayer:
1) P20,000 from accounts written off in a year which had a net income of P200,000 before the
write-off (write-dff for the year was P20,000)
2) P5,000 from accounts written off in a year which had a net loss before written off in a year,
which had a net loss before write off of P36,000 (write-off for the year was P5,000).
The income from the bad debt recovery is:
a.
PO
b. P20,000
c. P25,000

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