The following selected account balances for the City of Hampton on January 1, 2015 are listed below:
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Question:
The following selected account balances for the City of Hampton on January 1, 2015 are listed below:
Delinquent Taxes Receivable | $34,000 | Dr. |
Allowance for Uncollectible Delinquent Taxes | 11,000 | Cr. |
Tax Liens Receivable | 12,000 | Dr. |
Allowance for Uncollectible Tax Liens | 5,000 | Cr. |
Instructions
Record the following transactions that occurred during 2015:
a. Current property taxes are levied at $750,000 with a 4% allowance for uncollectible property taxes.
b. Property to which tax liens apply is sold for $6,000 and the account is closed.
c. Current property taxes are collected in the amount of $702,000.
d. Previous delinquent property taxes are converted to tax liens and the current uncollected property taxes are considered delinquent.
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