Our Corporation Notice of Assessment came in and we received a refund. In the journal entry, do I debit the bank and credit the Federal Taxes Payable account (Other Current Liability) or the Taxes Payable (Expense account)?
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The company expects tax refund because of SR&ED credit . If I debit A?R and credit A/p in 2018(I am filing the T2), I can offset A/r with the bank when I receive it but what should I do withA/P. Does it last for ever in balance sheet?