The following transactions are for Al Khor City Council for the year 2017: 1. Al Khor...

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The following transactions are for Al Khor City Council for the year 2017: 1. Al Khor City Council levied real estate taxes in the amount of 13,000,000 riyals for the year 2017, and the city council expects that the value of 100,000 riyals is uncollectible. Also, it is expected that 75% of the taxes receivable will be collected during the 2% discount period. In addition, there is 2,000,000 riyals of taxes receivable that will be collected before the end of the year, but after the end of the discount period. The remaining balance of the taxes receivable will be collected in equally during the first ten months of 2018. 2. Al Khor City Council has collected 10,000,000 riyals (before calculating the value of the discount) from taxes receivable before the end of the discount period. The remaining balance of taxes receivable are past due. 3. Al Khor City Council has written off taxes receivable in the amount of 60,000 riyals, which are expected to be uncollectible. 4. Al Khor City Council collected 400,000 riyals in taxes after the discount period, but before the end of the year. Required: Prepare the journal entries necessary to record the above transactions in the general ledger of Al Khor City and prepare the adjusting entries if necessary. The following transactions are for Al Khor City Council for the year 2017: 1. Al Khor City Council levied real estate taxes in the amount of 13,000,000 riyals for the year 2017, and the city council expects that the value of 100,000 riyals is uncollectible. Also, it is expected that 75% of the taxes receivable will be collected during the 2% discount period. In addition, there is 2,000,000 riyals of taxes receivable that will be collected before the end of the year, but after the end of the discount period. The remaining balance of the taxes receivable will be collected in equally during the first ten months of 2018. 2. Al Khor City Council has collected 10,000,000 riyals (before calculating the value of the discount) from taxes receivable before the end of the discount period. The remaining balance of taxes receivable are past due. 3. Al Khor City Council has written off taxes receivable in the amount of 60,000 riyals, which are expected to be uncollectible. 4. Al Khor City Council collected 400,000 riyals in taxes after the discount period, but before the end of the year. Required: Prepare the journal entries necessary to record the above transactions in the general ledger of Al Khor City and prepare the adjusting entries if necessary.

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1 Real Estate Taxes Receivable 13000000 Riyals Debit Real Estate Taxes Receivable 13000000 ... View the full answer