66) Trade accounts payable are amounts owed to suppliers for products or services purchased on credit. Answer: 67) A potential lawsuit claim is disclosed when the claim can be reasonably estimated and it is reasonably possible. Answer 68) The amount of federal income tax withheld from employee pay depends on the employee's annual earnings rate and the number of withholding allowances claimed by the employee. Answer 69) Deposits of amounts payable to the federal government may be paid through federal depository banks. Answer: 70) Accrued vacation benefits are a form of estimated liability for an employer Answer: 71) A corporation has a S40,000 credit balance in the Income Tax Payable account. Period end information shows that the actual liability is $47,000. The company should record an entry to debit Income Tax Expense for $7,000 and credit Income Taxes Payable for $7,000