Year end Adjusting Entries
I'm doing year end adjusting entries.
Question #1
Bad Debt expense for the year totals $2,900
So would I Debit the Bad Debt Expense acct $2900
and credit the Allow of doubtful acct $2900
Question #2
The income tax rate is 20% and the income taxes are payable in the first quarter of 2009
Debit Income tax expense
Credit Income tax payable
How do you get the income tax amount?
If I do an income statement the net income amount is $18,450
Would I multiply $18,450 x 20% = $3,690 is that the amount of tax?
Thank you for your help.
J