foreign withholding tax return

SOLVED

In 2019 and 2020 we paid X foreign withholding tax in USD. Our accountant recorded it in CAD on balance sheet as a accrued receivables. Now, we received that tax return in USD. How do I record money we received, what account should I use? Once money is received, should Accrued receivables decrease? 

Thank You, 

Parents
  • +1
    verified answer

    Hi Margaret:

    First of all you will need to find out the exchange amount from USD to CAD of the money received. If the total amount has been paid then the accrued receivable should decrease and you bank account should increase and the balancing amount should reflect the exchange difference in your currency exchange account. I hope this helps!

Reply
  • +1
    verified answer

    Hi Margaret:

    First of all you will need to find out the exchange amount from USD to CAD of the money received. If the total amount has been paid then the accrued receivable should decrease and you bank account should increase and the balancing amount should reflect the exchange difference in your currency exchange account. I hope this helps!

Children