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