(TCO 9) D Trucking uses the accrual method of accounting.
(TCO 9) D Trucking uses the accrual method of accounting. Below is a reconciliation of D Trucking’s allowance for
bad debts for the current year.
| Beginning allowance for bad debts | $61,150 |
| Actual write-offs of accounts receivable during the year | (70,000) |
| Addition to allowance | 90,500 |
| Ending allowance for bad debts | $69,650 |
Considering the difference between the GAAP and the tax rules for accounting for bad debts, calculate D Trucking’s temporary excess of taxable income over book income. (Points : 30)
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