A government levies property taxes for general government activities of $800,000 for the current year and it expects to not be able to collect $80,000 of the property taxes. The government should credit Revenues-property taxes for $800,000.

Question

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The government would debit Property taxes receivable for $800,000, It would credit Allowance for refunds and uncollectible taxes for $80,000 and credit Revenues-property taxes for $720,000.

A Government Levies Property Taxes for General Government Activities of $800,000