Lance lawn services reports bad debt expense using the

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Reference no: EM13605078

Lance Lawn Services reports bad debt expense using the allowance method. For tax purposes, the expense is deducted when accounts prove uncollectible (the direct write-off method). At December 31, 2011, Lance has accounts receivable and an allowance for uncollectible accounts of $20 million and $1 million, respectively, and taxable income of $75 million. At December 31, 2010, Lance reported a deferred tax asset of $435,000 related to this difference in reporting bad debts, its only temporary difference. The enacted tax rate is 40% each year.

Required: Prepare the appropriate journal entry to record Lance's income tax provision for 2011. (Enter your answers in dollars not in millions. Omit the "tiny_mce_markerquot; sign in your response.)General Journal Debit Credit

Reference no: EM13605078

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