Winter Gear, Inc. started business on January 1, 20X1. The company uses the income statement approach to estimating bad debts. The company incorrectly used the actual write-off of the receivable for the recorded bad debt expense in the below income statement.

Credit sales	$678,000
Bad debt expense as a percentage of sales	2%
Write-off of accounts receivable	$1,000
Tax rate	30%
Estimated tax payment	$31,000

Incorrect income statement, for the year ended December 31:

Sales	$678,000
Expenses	549,200
Bad debt expense	1,000
Pretax income	127,800
Tax expense	38,340
Net income	89,460

Assuming estimated tax payment of $31,000 what is ending balance in taxes payable in 20X1 on the balance sheet?

Note: The income statement (book) uses an estimated bad debt expense amount, but the tax return uses the actual write-off amount. Taxes payable is based on the tax return. Complete an M-1 or mini-tax return to determine the tax liability. Don't forget about the estimated tax payment.