The City of Jonesboro Awards Discounts on Taxes for Timely

The City of Jonesboro awards discounts on taxes for timely payment. Specifically, taxpayers get a 1% discount on the total tax if it is paid within one month of the initial levy. What would the journal entry be to record the levy of $700,000 if the government anticipates there will be a 2% uncollectible rate and it is anticipated that the discounts will be $5,000? Record as if all taxes are expected to be collected during the year. $\begin{array}{llr}&&\text { Debit }&\text {Credit }\\ \text {A . } & \text { Taxes Receivable - Current } &\$700,000\\& \text {Allowance for Uncollectible Taxes-Curent } &&\$14,000\\& \text { Allowance for Discounts} &&5,000\\& \text { Revenues-Taxes} &&681,000\\ \text { B. } &\text { Taxes Receivable - Current } &\$700,000\\& \text {Revenues-Taxes } &&\$700,000\\ \text {C. } & \text { Taxes Receivable - Current } &\$695,000\\ &\text { Expenditures } &5,000\\& \text {Allowance for Uncollectible Taxes-Current } &&\$14,000\\& \text {Revenues-Taxes } &&686,000\\ \text { D. } & \text { Taxes Receivable - Current } &\$700,000\\ &\text { Allowance for Uncollectible Taxes-Current } &&\$14,000\\ &\text {Revenues-Taxes } &&686,000\\\end{array}$