New town is preparing to send out its property tax notices to property owners. The net levy for Fiscal Year 2021 is $8,400,000. The estimated uncollectible taxes were 4 percent. The notices were sent on July 2, 2020. Approximately $7,560,000 of the taxes were collected on October 5, 2020. Interest and penalties of $2,800 were assessed on this date, of which $300 were estimated to be uncollectible. On December 5, 2020, approximately $820,000 of the delinquent taxes were collected as well as $1,920 of interest and penalties. On January 18, 2021, the property tax board wrote off $114,000 of the delinquent taxes along with $140 of associated interest and penalties.

1. The entry in the General Fund to record the property tax notices will include a: A. Debit to Cash, $8,400,000. B. Credit to General Revenues, $8,400,000. C. Debit to Taxes Receivable—Current, $8,750,000. D. Credit to Estimated Uncollectible Taxes—Current, $336,000

2. The entry in the Government-wide journal to record the property tax notices will not include a: A. Debit to Taxes Receivable--Current, $8,400,000. B. Credit to General Revenues, $8,400,000. C. Debit to Taxes Receivable—Current, $8,750,000. D. Credit to Estimated Uncollectible Taxes—Current, $350,000

3. The entry to record the collection of the taxes at the government-wide level will include a: A. Debit to Cash, $8,400,000. B. Credit to Taxes Receivable—Current, $7,560,000. C. Debit to Taxes Receivable—Delinquent, $1,190,000. D. Credit to General Revenues, $7,560,000. 2

4. Summerville issued late notices those property owners who had not paid by October 5. The entry in the General Fund would include a: A. Credit to Taxes Receivable—Delinquent, $1,190,000. B. Credit to Estimated Uncollectible Delinquent Taxes, $336,000. C. Debit to Estimated Uncollectible Delinquent Taxes, $350,000. D. Debit to Taxes Receivable—Delinquent, $1,190,000.

Answer rating: 100% (QA)

1 D Credit to estimated uncollect... View the full answer