The Jackson Independent School District began the year with the following accounts on its Balance Sheet related to property taxes $($all amounts are in thousands of dollars$).$ All accounts have normal balances:

Taxes Receivable $$ Delinquent $$2,000$

Allowance for Uncollectible Taxes $$ Delinquent $$400$

Penalties and Interest Receivable $$200$

Allowance for Uncollectible Penalties and Interest $$15$

Deferred Revenues $($$$300$ Taxes, $$55$ Penalties and Interest$)$ $$355$

Selected transactions for the Jackson Independent School District are presented below.

On January $1,$ the school district levied property taxes of $$8,000.$ The due date for the taxes is March $31.$ Taxes are considered delinquent after that date. The school district expects to collect all but $4\%$ of the levy. In addition, the district offers a $2\%$ discount if the taxes are paid by February $28.$ The district expects $40\%$ of the tax to qualify for the discount.

Between January $2$ and February $28,$ the district collected $$4,800$ of the taxes due. Of this amount, $$1,300$ was due in the preceding fiscal year. The district also collected $$130$ of penalties and interest during the same time period.

During March, an additional $$3,500$ of receivables were collected. Of this amount, $$200$ were for the preceding fiscal year. Also during March, $$7$ of penalties and interest were collected.

On April $1,$ the balance of the current year taxes is past due. A $10\%$ penalty and $2\%$ in interest was immediately assessed on the delinquent debt. It is estimated that $$30$ of the total interest and penalties will prove uncollectible.

On June $12,$ the school district wrote off $$100$ of property taxes, $$10$ in penalties, and $$2$ in interest as uncollectible.

From March $31$ to December $31,$ the school district collected $$300$ of the property taxes that were levied on January $1,$ $$5$ in penalties, and $$1$ in interest. The school district expects to collect an additional $$200$ of property taxes and $$100$ of penalties and interest during the first two months of the next fiscal year.

Requirements

Prepare the necessary journal entries. Dates and explanations may be omitted. If a transaction requires no entry, do not leave it blank: state $$No Entry Required$$ and explain why.

Answer rating: 100% (QA)

To prepare the necessary journal entries for the given transactions I will provide a chronological list of the transactions and the corresponding jour... View the full answer