Interest and penalties of $59,580 were recorded on delinquent taxes, of which $10,750 was estimated to be uncollectible Sales taxes receivable of $21,722 were also recorded Required Interest and penalties should be recorded as Deferred Inflows of Resources, rather than interest and penalties revenu...

Prepare a journal entry to record transactions Date Account Dr Cr Interest and penalites rece ...

Interest and penalties of $59,580 were recorded on delinquent taxes, of which $10,750 was estimated to be

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Interest and penalties of $59,580 were recorded on delinquent taxes, of which $10,750 was estimated to be uncollectible. Sales taxes receivable of $21,722 were also recorded.

Required: Interest and penalties should be recorded as Deferred Inflows of Resources, rather than interest and penalties revenue, in the General Fund. On the other hand, sales taxes are recorded as revenue in the General Fund since they will be collected shortly after year end. At the government-wide level, both the interest and penalties and sales taxes are recorded as current year revenue.