(TCO 9) D Trucking uses the accrual method of accounting.

(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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