As at 30 June 2019,net accounts receivables was $57 000, and the allowance for doubtful debts was
Fantastic news! We've Found the answer you've been seeking!
Question:
As at 30 June 2019,net accounts receivables was $57 000, and the allowance for doubtful debts was $3000. On 30 June 2020, the respective balances were $64 000 and $4000. Assuming there were no other temporary differences, what is the journal entry to adjust for the changes in these balances as at 30 June 2020? The corporate tax rate is 30%.
Select one:
a. A.
30 June 2020
Dr
Deferred tax asset
$1 000
Cr
Income taxation expense
$1 000
b. D.
30 June 2020
Dr
Income taxation expense
$300
Cr
Deferred tax liability
$300
c. B.
30 June 2020
Dr
Income taxation expense
$1 000
Cr
Deferred tax liability
$1 000
d. C.
30 June 2020
Dr
Deferred tax asset
$300
Cr
Income taxation expense
$300
Expert Answer:
Posted Date:
