Prepare general journal entries to record the following transactions in Menefee City’s General Ledger and make adjusting entries, if needed:
1. Menefee City levied property taxes of $12,000,000 for 20X6. The taxes were levied on January 1, 20X6. Menefee expects $80,000 to be uncollectible. Three-fourths of the taxes receivable are expected to be collected within the 2% discount period. Another $1,000,000 of taxes receivable should be collected before year-end but after the discount period. The balance of the collectible taxes is expected to be collected at a uniform rate over the first 10 months of 20X7.
2. Menefee collected $9,100,000 (before discounts) of its taxes receivable prior to the end of the discount period. The balance of the taxes receivable are past due.
3. Menefee wrote off taxes receivable of $30,000 as uncollectible.
4. Menefee collected another $900,000 of its taxes receivable after the discount period but before year-end.

  • CreatedOctober 25, 2014
  • Files Included
Post your question