A firm records bad debt expenses on an accrual basis for financial reporting and on

a cash basis for tax reporting. In its $1999$ annual report, it reported that the opening

and closing balances in Allowance for Uncollectible $($a contra against receivables$)$

were $$1,200$ million and $$1,650$ million, respectively, and that customers owing $$550$

million defaulted during the year. The company$$s tax rate is $40$ percent. How much

is the deferred tax asset as a result of this temporary difference between financial and

tax reporting? If $30$ percent of the ending account receivable $($$$1000$ million$)$ is deemed to

be unrecoverable, how would the transaction be recorded? As a financial analyst, what

questions would you raise with the firm$$s CFO about the firm$$s deferred tax asset?