Meanwhile, operating income increases 28 million yen due to reversal of allowance for doubtful accounts
(following the decrease in the amount of accounts receivable regarding BE's specific customer).
The book safe-harbor method may not be applied to an allowance for doubtful accounts
related to accounts receivable to which a taxpayer is prohibited from applying the NAE method, such as receivables not earned through the performance of NAE-eligible services or receivables where interest or penalties are charged for failure to timely pay.
Had it been approved, this proposal would have applied the same antiseptic of sunlight to these accounts as was previously applied to the allowance for doubtful accounts
This article describes three techniques for assessing allowance for doubtful accounts
estimates and complying with Statement on Auditing Standards (SAS) no.
By 2002, accounts receivable for commercial solid waste services had reached $138,000, and the allowance for doubtful accounts
balance was $83,000.
Although he felt that the balance in the allowance for doubtful accounts
was probably somewhat excessive in prior years, he did not believe that the financial statements had been materially misstated.
XYZ Corporation Deferred Tax Assets/Liabilities 12/31/99 Deferred Tax Current Asset (Liability) Year 12/31/98 Activity Allowance for doubtful accounts
Book BS 15,000 Calc 19,000 Accumulated Book BS 320,000 P&L 203,994 Depreciation Tax PY (594,000) (1) (377,842) Accrued Bonuses Book BS 322,000 Calc (17,000) Accrued Vacation Book BS 325,000 Calc 69,000 Accrued Legal Fees Book Bs 150,000 P&L (150,000) Total 538,000 (252,848) (2) 206,000 (2) (96815) Deferred Tax Asset (Liability) Tax Tax 12/31/99 Rate Effect Allowance for doubtful accounts
BS 34,000 38.
Cash 1,000,000 Allowance for doubtful accounts
and notes 600,000 Interest revenue 166
2011-46 allows a taxpayer to compute its uncollectible amount under the NAE book safe-harbor method by multiplying the portion of the year-end allowance for doubtful accounts
on the taxpayer's applicable financial statement that is attributable to current-year NAE-eligible accounts receivable by 95%.
16 per diluted share), respectively, associated with reorganisation, severance & acquisition costs and increases to the company's allowance for doubtful accounts
5 million to the drug company's allowance for doubtful accounts
The Tax Reform Act of 1986 eliminated the reserve method of calculating the allowance for doubtful accounts
for tax purposes for many taxpayers.
The report includes an in-depth discussion of bad debt accounting practices and reserve methodologies plus a company-specific presentation of historical trends in revenue, bad debt expense, accounts receivables, and the allowance for doubtful accounts
The $10,000 bad debt expense relating to the increase in allowance for doubtful accounts
is not deductible and must be added back to book income on Schedule M-1.
Finally, say you are evaluating a potential foreign acquisition that has had to make a particularly tough estimate - the allowance for doubtful accounts
, inventory obsolescence, or the resolution of a lawsuit, for example.