Dover City has calculated that General Fund property tax revenues of $5,640,000 are required for the current fiscal year. Over the past several years, the city has collected 94 percent of all property taxes levied. The city levied property taxes in the amount that will generate the required $5,640,000. Which of the following general journal entries would correctly record the property tax levy?

Question

Quizplus · Accepted Answer

The entry should be a debit to Property Tax Receivable for $5,640,000, representing the amount of property taxes levied for the year. This should be balanced by a credit to Property Tax Revenue for the same amount. Choice B provides the correct accounts and amounts.

Dover City Has Calculated That General Fund Property Tax Revenues