Reserve account journal entry
Asked Nov 14, 2010, 08:01 AM
What would be the entry for this scenario:
Company has excess tax reserve for 17 million, they should have released the entire amount excess accrual to income statement. But instead, they only released 5 million and the rest went to an account on balance sheet.
I want to know what the journal entries would be if they did what they are suppose to and what they actually did.
I am not even sure is the tax reserve account the same as allowance for doubtful account? Or was it something else?