At the beginning of 2020, a town reports the following balances, related to 2019 taxes:
$$\begin{array} { l l }
\text { Property taxes receivable } & \$ 300,000 \
\text { Allowance for uncollectible taxes } & \underline { ( 160,000 ) } \
\text { Property taxes receivable, net } & \underline { \underline { \$ 140,000 } }
\end{array}$$ Cash collected in 2020 from property owners for 2019 taxes was $155,000. The remaining uncollected taxes were written off.
Property tax bills were sent out at the beginning of 2020 in the amount of $4,000,000, of which $300,000 were estimated to be uncollectible. Cash collected from property owners for 2020 taxes was $3,650,000. Of the $350,000 uncollected at year-end, $100,000 in taxes are expected to be collected in the next 60 days, and $20,000 are expected to be collected more than 60 days from year-end. The remainder are considered uncollectible.
Required
Prepare the journal entries to record the above information in the general fund accounts.

Question

At the beginning of 2020, a town reports the following balances, related to 2019 taxes:
 $$\begin{array} { l l } 
\text { Property taxes receivable } & \$ 300,000 \
\text { Allowance for uncollectible taxes } & \underline { ( 160,000 ) } \
\text { Property taxes receivable, net } & \underline { \underline { \$ 140,000 } }
\end{array}$$ Cash collected in 2020 from property owners for 2019 taxes was $155,000. The remaining uncollected taxes were written off.
Property tax bills were sent out at the beginning of 2020 in the amount of $4,000,000, of which $300,000 were estimated to be uncollectible. Cash collected from property owners for 2020 taxes was $3,650,000. Of the $350,000 uncollected at year-end, $100,000 in taxes are expected to be collected in the next 60 days, and $20,000 are expected to be collected more than 60 days from year-end. The remainder are considered uncollectible.
Required
Prepare the journal entries to record the above information in the general fund accounts.

Quizplus · Accepted Answer

The Answer of At the beginning of 2020, a town reports the following balances, related to 2019 taxes:
 $$\begin{array} { l l } 
\text { Property taxes receivable } & \$ 300,000 \
\text { Allowance for uncollectible taxes } & \underline { ( 160,000 ) } \
\text { Property taxes receivable, net } & \underline { \underline { \$ 140,000 } }
\end{array}$$ Cash collected in 2020 from property owners for 2019 taxes was $155,000. The remaining uncollected taxes were written off.
Property tax bills were sent out at the beginning of 2020 in the amount of $4,000,000, of which $300,000 were estimated to be uncollectible. Cash collected from property owners for 2020 taxes was $3,650,000. Of the $350,000 uncollected at year-end, $100,000 in taxes are expected to be collected in the next 60 days, and $20,000 are expected to be collected more than 60 days from year-end. The remainder are considered uncollectible.
Required
Prepare the journal entries to record the above information in the general fund accounts.

At the Beginning of 2020, a Town Reports the Following