(TCO 9) D Trucking uses the accrual method of accounting. Below is a reconciliation of D Trucking’s allowance for
bad debts for the current year.
|Beginning allowance for bad debts||$61,150|
|Actual write-offs of accounts receivable during the year||(70,000)|
|Addition to allowance||90,500|
|Ending allowance for bad debts||$69,650|
Considering the difference between the GAAP and the tax rules for accounting for bad debts, calculate D Trucking’s temporary excess of taxable income over book income. (Points : 30)
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