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The Town of Quincy’s fiscal year ends on June 30. The following data relate to the...

The Town of Quincy’s fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30, 2017. The balance in Deferred Inflows—Property Taxes was $68,000 at the end of the previous year. This was recognized as revenue in the current year in a reversing journal entry. On July 1, 2016, property taxes in the amount of $8,650,000 were levied. It was estimated that 0.5 percent would be uncollectible. The property taxes were intended to finance the expenditures for the year ended June 30, 2017. October 31, $4,675,000 in property taxes were collected. December 31, $3,775,000 in additional property taxes were collected. Receivables totaling $9,450 were deemed to be uncollectible and written off. On June 30, $76,000 was moved from Revenues Control to Deferred Inflows, because it was not expected to be collected within 60 days.

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Answer:

Date Particulars Debit ($) Credit ($)
Jul-01 Deferred Revenues - Property Taxes $68,000
Revenues Control $68,000
Taxes Receivables - Current $8,650,000
Estimated Uncollectible Current Taxes $43,250
Revenue Control $8,606,750
Oct-31 Cash $4,675,000
Taxes Receivables - Current $4,675,000
Dec-31 Cash $3,775,000
Taxes Receivables - Current $3,775,000
Estimated Uncollectible Delinquent Taxes $9,450
Taxes Receivable - Delinquent $9,450
Jun-30 Revenue Control $76,000
Deferred Revenue - Property taxes $76,000

ekkarill92 answered 2 years ago
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