Answer:
Dr Taxes Receivable- Current $5,100,000
Cr Allowance for Uncollectible Current Taxes $153,000
Cr. Revenues $4,947,000
Dr Cash $4,755,000
Cr Taxes Receivable-Current $4,755,000
Dr Taxes Receivable-Delinquent $345,000
Dr Allowance for Uncollectible Current Taxes $153,000
Cr Taxes Receivable-Current $345,000
Cr Allowance for Uncollectible Delinquent Taxes $153,000
(3%*$5,100,000)
Dr Interest & Penalties on Delinquent Taxes $15,400
Cr Allowance for Uncollectible Interest and Penalties $2,150
Cr Revenues $13,250
Dr Cash $63,200
Cr Taxes Receivable-Delinquent $57,500
Cr Interest & Penalties Receivable on Taxes $5,700
Explanation:
Preparation of the journal entries to Record entries for the transactions as stated and to Prepare the journal entries to record the tax levy on July 1, 2020, in the General Fund
Dr Taxes Receivable- Current $5,100,000
Cr Allowance for Uncollectible Current Taxes $153,000
(3%*$5,100,000)
Cr Revenues $4,947,000
($5,100,000-$153,000)
Dr Cash $4,755,000
Cr Taxes Receivable-Current $4,755,000
Dr Taxes Receivable-Delinquent $345,000
$5,100,000-$4,755,000)
Dr Allowance for Uncollectible Current Taxes $153,000
(3%*$5,100,000)
Cr Taxes Receivable-Current $345,000
Cr Allowance for Uncollectible Delinquent Taxes $153,000
(3%*$5,100,000)
Dr Interest & Penalties on Delinquent Taxes $15,400
Cr Allowance for Uncollectible Interest and Penalties $2,150
($15,400-$13,250)
Cr Revenues $13,250
Dr Cash $63,200
( $57,500+$5,700)
Cr Taxes Receivable--Delinquent $57,500
Cr Interest & Penalties Receivable on Taxes $5,700
